The three types of employment are frictional, structural and cyclical. Frictional unemployment is caused by imperfect information; employers are not mindful of all available and their qualifications. Also, those workers are not altogether aware of what the job requirements are. Structural unemployment reflects a flawed match of the employee’s skillsets to the requirements of their jobs. It also reflects on the different characteristics of the labor market. Cyclical unemployment reflects on business cycle conditions and when there is a decline in business activity the cyclical unemployment increases. An economic downturn is the main result of all three types of unemployment, for example the coalmine operations, in Kentucky and West Virginia in the 1990’s and 2000’s, went on an economic slid due to air quality regulations. This reducing the demand for coal and in turn minimizing the workforce needs. I lived in Michigan for the majority of my life, which is statistically one of the rated unemployed states. The entire state is on an economic downturn because one of its major economic cash crops was on a major pitfall. The motor industry made a huge impact in the economic structure of Michigan for the longest time. Their most well know city, Detroit, was know as the “Motor City” because of the tremendous revenue this caused. General Motors, the “icon of corporate America” and the historic backbone of this country’s industrial might, fi led for bankruptcy. After years of losing ground to foreign automakers and suffering severe losses during the current recession, General Motors found itself with no other recourse but to
