... the business cycle. During a recession many people put off buying certain durable goods resulting in durable goods industries laying off workers until the economy recovers. 4) Technological change is an increase in the level of output resulting from automation and computerised methods of production. Apart from increasing output, technological change can affect the ratio of capital to labour used in a factory. If the labour force is reduced as a result there is technological unemployment in that industry. 5) Seasonal unemployment results from changes in the demand for certain products. For example in the construction industry carpenters and builders have less work during the winter and employment in the tourism increases during the holiday season. In order to be able to recommend policies to combat the high levels of unemployment in Europe we first need to identify the main types of unemployment currently in ...

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