Unemployment
Unemployment occurs when individuals are willing and able to work at prevailing wage rates but cannot find employment. Unemployment rate is the percentage of the labour force that is unemployed. High unemployment indicates economic problems and wasted resources.
Real World
After the 2008 financial crisis, UK unemployment peaked at 8.5% in 2011 — but youth unemployment reached 22%, showing how cyclical downturns hit younger workers disproportionately hard.
Exam Focus
Always classify the type of unemployment before recommending a policy — demand-side fixes won't solve structural unemployment.
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