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ii. Underemployed

Underemployment is the labor force that has worked but is not working

optimally or working under normal working hours. For example, farmers who

are unemployed because they are waiting for the harvest season to arrive.

iii. Disguised Unemployment

Hidden unemployment is the labor force that is already working but is not

working optimally because of a mismatch in educational background, or the job
does not match the worker's talents and abilities. An example of this is a law

graduate who works as a customer service representative at a bank when
ideally a law graduate could work as a lawyer, prosecutor, or notary.

b. Unemployment Based on Causes

I.Structural Unemployment

Structural unemployment occurs because of a change in the economic

structure of a country, for example, a change from a country with an
agricultural structure to an industrial country. This unemployment is caused

by the fact that the skills possessed by the labor force do not match the jobs
that are currently needed.

II.Frictional Unemployment

Frictional unemployment is the labor force that is not working because they

expect a better job than before. Frictional unemployment is temporary
because basically it is not caused by the inability to get a job, but rather by

the desire to get a better job and salary.

III. Cyclical Unemployment

Cyclical unemployment occurs due to a downturn in economic activity. When

demand for goods and services in the economy declines, it forces firms to lay
off workers in an effort to cut costs. Firms generate revenue from the sale of

goods

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