Distinguish between cyclical and structural unemployment.

Difference between cyclical and structural unemployment : Cyclical unemployment occurs due to cyclical fluctuations in economy. Depreciation is one of the phases of trade cycle. It is a phase when aggregate demand declines significantly leading to cut in output and employment. On the other hand structural unemployment occurs due to structural changes in the economy. Change in technology render the old technologies unemployed. In addition to. this change in the pattern of demand, workers are thrown out.