During the tea session the other day, Arnold and Sarah talked about:  the considerations involved in the setting up of an integrated resort in Singapore, which will include a casino, unemployment and the challenges facing Singapore in the next few years.

  • Cyclical unemployment
    • Unemployment resulting from changes in the business cycle. An example of cyclical unemployment is layoffs and cutbacks resulting from a recessionary economic phase.
  • Frictional unemployment
    • Unemployment that is always present in the economy, resulting from temporary transitions made by workers and employers or from workers and employers having inconsistent or incomplete information. For example, a first-time job seeker may lack the resources or efficiency for finding the company that has the job that is available and suitable for him or her. As a result this person does not take other work, temporarily holding out for the better-paying job. Another example of when frictional employment occurs is when a company abstains from hiring because it believes there are not enough qualified individuals available for the job, when in actuality there is.
  • Natural unemployment
    • The long-term sustainable rate of unemployment within an economy. It is important to remember that when the economy is at "full employment," it is at its natural rate of unemployment.
  • Structural unemployment
    • Unemployment resulting from changes in the basic composition of the economy. These changes simultaneously open new positions for trained workers. An example of structural unemployment is the technological revolution. Computers may have eliminated jobs, but they also opened up new positions for those who have the skills to operate the computers.