Seasonal unemployment occurs due to

Question

BlackTom AI · Accepted Answer

Question restatement: Seasonal unemployment occurs due to changes in demand for workers driven by weather and other seasonal factors.

Option a: 'the normal job search time required by people when changing jobs, initially entering the labour force, or re-entering the labour force.' This describes frictions in the labor market, not seasonal unemployment. It corresponds to natural turnover and job-search frictions, not a predictable seasonal pattern.

Option b: 'a downturn in the business cycle; often referred to as demand-deficient unemployment.' This reflects cyclical unemployment, which arises from insufficient aggregate demand during economic downturns, not the regular seasonal fluctuations caused by weather or seasonal activities.

Option c: 'a mismatch between the skills of available workers and the jobs required by firms.' This is structural unemployment, resulting from long-term changes in the economy that alter the fit between workers' skills and job requirements, rather than the calendar-driven seasonal demand for labor.

Option d: 'changes in demand for workers due to weather conditions and other seasonal factors.' This precisely captures seasonal unemployment: the demand for labor varies predictably with seasons (for example, tourism in summer, agriculture harvests, retail hiring during holidays), leading to unemployment during off-peak periods.

In summary, the other options describe frictional, cyclical, and structural forms of unemployment, which differ from the seasonal pattern described in the question. The seasonal pattern is tied to predictable, calendar-based shifts in labor demand, primarily driven by weather and seasonal activities.

Seasonal unemployment occurs due to

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