The above factors may be categorized into the following:
Cyclical unemployment goes hand in hand with the business cycle. Higher the GDP, lower will be the cyclical unemployment at the peak of the business cycle and the vice versa is true when the economy is in the trough of the business cycle. If cyclical unemployment rate stretches for an extended period, it may cause irreparable damage to the labor force in the country.
It is a well-known fact that everyday new products are being launched in the market. As a result, the demand for certain goods and services also changes. This leads to increase in unemployment rate in certain sectors of the economy and creates jobs in yet others. Under these circumstances, re employment may be possible if the worker relocates or migrates to other sectors (in demand).
It has also been observed that if there are undulations in the agricultural sector (due to factors like low production, drought, famine or natural disaster), the effects are felt in agribusiness. This may also be regarded as one of the factors in unemployment.