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Time between leaving a job and looking for another one

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arises when there is a lack of demand in the economy

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Workers lacking the right or sufficient skills 4 a job

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Labour imperfections causing wages to be higher than the equilibrium

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When people are unemployed at certain times of the year, because they work in industries where they are not needed all year round

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Government spending on education + training of the labour force

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Government spending on education + training of the labour force

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train workers with new skills

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provide more information about jobs / advertise

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use regional policies to help areas where unemployment is high

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use regional policies to help areas where unemployment is high

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This will reduce costs as well as the selling price of products

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demand side policies such as reducing interest rates (monetary policy) to stimulate demand in the economy ; stabilise the peaks and troughs

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more borrowing -> more consumption -> higher demand for goods ->