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JUNE 2011<br />

INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2<br />

Voluntary unemployment is most frequently observed in European countries. Because the<br />

government with its more social structure, provides a subsistence wage to unemployed until they<br />

find a job again. This makes it difficult for the unemployed people to get hired. Because the fact<br />

that s/he is recruited and works 35-40 hours a week, does not cause a drastic difference in his/her<br />

unemployed wage. This hampers the unemployed from having fears and concerns and prevents<br />

them from putting forth a serious effort to find a job.<br />

2.2.1.2 Involuntary Unemployment<br />

It is the state when people cannot find jobs although they are willing to work at the going wage.<br />

People in such conditions are defined as involuntary unemployed. In underdeveloped countries,<br />

disguised unemployment, cyclical unemployment, seasonal unemployment and technological<br />

unemployment caused by technological progresses are all types of involuntary unemployment.<br />

The reason behind this type of unemployment is either demand insufficiency or both demand and<br />

capital insufficiency (Aren, 1998, p. 6).<br />

2.2.1.3 Temporary (Frictional – Incidental) Unemployment<br />

Skills, abilities, experiences, efforts of workers, geographical locations and desired working<br />

duration for the time spared for working are wide –ranging. Likewise, the employers who would<br />

like to recruit workers have various requirements on work experience and skills of workers,<br />

working conditions, employment place, hours and wages to be paid. Due to these differences, it<br />

will take some time for workers to find an available job for themselves. Temporary increase in<br />

unemployment in the case when workers are seeking for a job and employers are looking for<br />

available work force is defined as the frictional unemployment. Thus, Frictional unemployment<br />

is a temporary period (Gürler, 2000, p. 130).<br />

Frictional unemployment is frequently encountered during crisis periods. Enterprises compensate<br />

the reduction in their sales through turning their workers into temporary unemployed. As a<br />

matter of fact, as observed in most of the countries in latest economic crisis experienced in 2008-<br />

2009, rising unemployment rate begins to decrease at its former rate with the overcome of the<br />

crisis.<br />

2.2.1.4 Seasonal Unemployment<br />

Seasonal Unemployment is a type of unemployment occurring when economic activities lose<br />

their intensity in certain periods of time.<br />

Seasonal unemployment is the state when individuals living in countries whose economy<br />

depends on agriculture cannot find a job in dead seasons when there is no agricultural activity<br />

although they are willing to work at prevailing wage. This type of unemployment is mostly<br />

observed in seasonal sectors as tourism, agriculture and construction.<br />

In certain sectors, while the labor demand increases in specific seasons, in rest of the year the<br />

labor demand decreases at minimum level and seasonal unemployment is observed. For instance<br />

people working in agriculture and construction sectors become unemployed in winter season<br />

which is considered as the dead season. On the other hand, people working in winter tourism<br />

become unemployed during summer and the ones working in summer tourism become<br />

unemployed during winter (Dinler, 2003, p. 456).<br />

2.2.1.5 Cyclical Unemployment<br />

Cyclical unemployment is a type of unemployment occurring as a result of the recession in<br />

production volume from time to time (Türkay & Alkin, 2001, p. 163).<br />

Cyclical Unemployment was most frequently observed during world economic crisis occurred in<br />

1929. As a type of Involuntary Unemployment, cyclical unemployment may continue for a<br />

couple of years according to the intensity of the economic crisis (Dinler, 2003, p. 455–456).<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 1213

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