Macroeconomics is naturally much bigger than microeconomics. It similarly looks at how actors make decisions but focuses on much larger actors and the ways that economies behave on larger scales. In practice, this involves a focus on the economies of states (e.g. Germany) and regions (e.g. the European Union). The resources of land, labor, and capital are central to macro-economics.

Frictional Unemployment

To define frictional unemployment more concisely: it is a form of unemployment that arises due to an economy’s employment transitions. It takes place in a healthy and stable economy with plenty of growth. Workers that create frictional unemployment include those who are changing their jobs and those who are first joining the workforce.


A person is considered to be unemployed if he doesn’t currently doesn’t have a job and is actively searching for one. When we look at the unemployment rate, we consider someone who is actively seeking a job. Otherwise, we do not count them in the labor force.

Seasonal Unemployment

The concept of seasonal unemployment describes a situation when workers experience unemployment at certain times of the year when the demand has decreased. Although unemployment is always problematic, the upside is that seasonal unemployment doesn’t last–eventually, the peak season of a given industry arrives and many workers become employed once again.