Which type of unemployment occurs due to seasonal changes in the labor market?

Which type of unemployment occurs due to seasonal changes in the labor market?

• A. Cyclical unemployment
• B. Seasonal unemployment
• C. Structural unemployment
• D. Frictional unemployment

Answer: (B)

Seasonal unemployment is the correct answer because it specifically refers to job loss that occurs at certain times of the year when demand for labor is lower. This type of unemployment is common in industries such as agriculture, tourism, and retail, where work is dependent on the seasons or specific timeframes of the year (e.g., holiday seasons). During off-peak periods, employers may not need as many workers, leading to seasonal layoffs or reduced hours for employees. This pattern is predictable and repeats regularly as the seasons change, thereby distinguishing it from other types of unemployment that may arise due to economic cycles, shifts in the market, or transitions between jobs. Understanding seasonal unemployment is essential for both businesses and employees as it helps in planning for periods of unemployment and managing labor resources effectively.

Seasonal unemployment is the correct answer because it specifically refers to job loss that occurs at certain times of the year when demand for labor is lower. This type of unemployment is common in industries such as agriculture, tourism, and retail, where work is dependent on the seasons or specific timeframes of the year (e.g., holiday seasons).

During off-peak periods, employers may not need as many workers, leading to seasonal layoffs or reduced hours for employees. This pattern is predictable and repeats regularly as the seasons change, thereby distinguishing it from other types of unemployment that may arise due to economic cycles, shifts in the market, or transitions between jobs. Understanding seasonal unemployment is essential for both businesses and employees as it helps in planning for periods of unemployment and managing labor resources effectively.