ABSTRACT
Employment and the related wage payments give workers earnings which amount to about 70 percent of national income and, at the same time, 70 percent of the nation's purchasing power. Unemployment is a word with negative implications to many of them. There are three common categories of unemployment: frictional, structural, and deficient demand or cyclical. Seasonal unemployment is no longer considered to be an important source of overall employment and the replacement suggested is anti-inflation unemployment. Statistical discrimination, which affects the distribution of unemployment, has been included for good measure. Structural unemployment occurs if there is a mismatch between the skills required by employers and the skills of the unemployed. It also occurs when there is a mismatch between the location of jobs and the unemployed with the skills required for the job. There would be jobs for the structurally unemployed if they only had the right skills or lived in the right area.
