Individuals tend to have more control over frictional unemployment than any other type of unemployment. During adverse economic times, frictional unemployment tends to decline as workers think carefully about switching employment when few jobs are available. Cyclical unemployment results from downturns in business activity and is brought about by reduced demand for goods and services. Cyclical unemployment can affect a broad range of occupations and industries and is usually of a longer-term nature. In the past, rising cyclical unemployment during recessions has imposed pressure on the government to provide some form of stimulus to business activity in order to provide jobs for the unemployed.
Cyclical unemployment is associated with recessions.
In both of these cases, annual average unemployment rates jumped into double-digits and stayed there until the cycle reversed. Structural unemployment is caused by a mismatch between the types of jobs available and the skills of the workers and may be the most serious type of unemployment. Structural unemployment is a problem that does not go away after a recession. Sometimes, geographical relocation may be a third option. Local Levels of Joblessness During the 1990s, Salem MSA's and Yamhill County's average annual unemployment rate was consistently below Oregon's rate, sometimes by as much as a full percentage point.