Which unemployment arises from the regular change in seasons and the termination of jobs at the same time each year?

• A. Seasonal unemployment
• B. Unemployment
• C. Frictional unemployment
• D. Cyclical unemployment

Answer: (A)

Seasonal unemployment occurs when the demand for labor is tied to the time of year, causing jobs to end or be created in a regular, repeating pattern. Each year, certain industries such as agriculture, tourism, and holiday retail hire up for a season and then lay off workers when that season ends. Because these layoffs happen predictably at the same times annually, workers experience a temporary gap in employment even though the overall economy may be strong. This differs from frictional unemployment, which is about people transitioning between jobs, and from cyclical unemployment, which arises from downturns in the broader economy. So the situation described fits seasonal unemployment because it stems from regular seasonal changes in production and hiring.