Unemployment can be voluntary, such as when you leave a job to take a better-paying one, or involuntary, as when you’re laid off or fired.
How to file for unemployment
There are four main types of unemployment:
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Frictional unemployment: Short-term and voluntary; occurs when people leave jobs to find better ones, or when recent graduates enter the workforce.
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Cyclical unemployment: Varies with the economic cycle, rising during recessions and falling during periods of growth.
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Structural unemployment: Longer-term; happens when technological changes or shifts in the economy make certain skills obsolete, displacing workers.
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Institutional unemployment: Long-term or permanent; caused by institutional factors like government policies (for example, minimum wage laws) that can limit employment opportunities.