Cambridge International as and a level Economics Ebook

1
Explain why output per worker hour is a better 
measure of productivity than output per worker.
2
Explain 
two
reasons why a country’s productivity 
may be lower than that of the other rival countries.
241
Chapter 9: The macroeconomy 

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Frictional unemployment
is unemployment that 
arises when workers are between jobs. One form of 
frictional unemployment is search unemployment. Th
is 
arises when workers do not accept the fi rst job or jobs 
on off er but spend some time looking for a better paid 
job. Casual and seasonal unemployment are two other 
forms of frictional unemployment. Casual unemployment 
refers to workers who are out of work between periods 
of employment including, for example, actors, supply 
teachers and construction workers. In the case of seasonal 
unemployment, demand for workers fl uctuates according 
to the time of the year. During periods of the year, people 
working in, for example, the tourism, hospitality, building 
and farming industries may be out of work.
As its name suggests, 
structural unemployment
arises 
due to changes in the structure of the economy. Over 
time the pattern of demand and supply will change. Some 
industries will be expanding and some will be contracting. 
If workers cannot move from one industry to another 
industry, due to a lack of geographical or occupational 
immobility, they may become structurally unemployed. 
Structural unemployment can take a number of forms. One 
is technological unemployment. In this case, people are out 
of work due to the introduction of labour-saving techniques.
Frictional unemployment: 
unemployment that is 
temporary and arises where people are in-between jobs.