Types
Frictional : When moving from one job to another, the unemployment temporarily experienced when looking for a new job.
Structural : Caused by a mismatch between the location of jobs and the location of job-seekers. "Location" may be geographical, or in terms of skills. The mismatch comes because unemployed are unwilling or unable to change geography or skills.
Cyclical (Demand deficient unemployment) unemployment: When there is not enough aggregate demand for the labor. Caused by a business cycle recession.
Technological: Caused by the replacement of workers by machines or other advanced technology.
Classical (real-wage): When real wages for a job are set above the market-clearing level. Often as a result of government intervention (as with the minimum wage) or unions. Although some suggest that even social taboos can prevent wages from falling to the market clearing level.
Marxian: When unemployment is needed to motivate workers to work hard and to keep wages down.
Seasonal: When an occupation is not in demand at certain seasons. For example, construction workers in winter, ski instructors in summer.