SEASONAL UNEMPLOYMENT: Unemployment attributable to relatively regular and predictable declines in particular industries or occupations over the course of a year, often corresponding with the climatic seasons. Unlike cyclical unemployment, which may or may not occur at any given time, seasonal unemployment is an essential part of many jobs. For example, a regular, run-of-the-mill, department store Santa Clause can count on 11 months of unemployment each year. Seasonal unemployment is one of four unemployment sources. The other three are cyclical unemployment, frictional unemployment, and structural unemployment.Because seasonal unemployment is relatively regular and moderately predictable, it is generally considered part of the "conditions of employment." Construction workers can expect unemployment during the winter months or periods of inclement weather. School teachers regularly face unemployment during the summer. The employment of farm workers varies in a predictable manner with the end of seasonal planting and harvesting activities. Workers accepting employment in these occupations and industries are generally aware of these conditions, and wages are often paid accordingly. In fact, it is not unreasonable to think of seasonal unemployment as vacation time. For these reasons, seasonal unemployment is largely ignored in the study of the macroeconomy that is concerned with business-cycle instability and cyclical unemployment. As might be expected, Shady Valley, a thriving hypothetical community with four distinct climatic seasons every year, runs rampant with seasonal unemployment. Here are a few examples:
The BadThe bad of seasonal unemployment is the same as that for any type of unemployment. Unemployed workers suffer personal hardships and the economy in general loses production.
The GoodThe good of seasonal unemployment results because it is part of the "conditions of employment." In much the same way that weekends, holidays, and two-week vacations are "part of the job," so too is seasonal unemployment for most jobs. Seasonal unemployment can actually be considered "built in" unpaid vacation time. Many people seek out occupations and industries that have periods of seasonal unemployment. Alicia Hyfield would NOT care to work at the Amusement Park if it meant year-round employment. Duncan Thurly actually chose a career in academia because it included summers off.And The PoliciesGiven the "conditions of employment" associated with seasonal unemployment, there is not really a lot that needs to be done, at least not from a public policy standpoint. It might be possible for the government to make bad weather illegal, but short of that, seasonal unemployment is an excellent example of the saying "the best government is the least government."However, this is not to say that productive innovations might not reduce and or eliminate seasonal down times and unemployment. For example, an indoor doomed baseball stadium would let Hair Doo Dueterman remain employed 12 months a year (if the public is willing to pay to see his baseball services). In a like manner, pre-fabricated housing, manufactured in an indoor factory, could eliminate Dan Dreiling's seasonal unemployment. Year-round classes would keep Duncan Thurly employed as a professor during the summer. The key with such changes largely rests with the buying public. Should the public demand 12 months of baseball and education, then the producers would likely find ways to accommodate. If the demand for housing by the buying public is such that producers can afford to make use of pre-fabricated buildings assembled in factories, then they are likely to accommodate. While seasonal climates can and do play a role in some seasonal unemployment, much of it is merely the result of seasonal changes in demand. Should demand change, then come rain, snow, sleet, or hail, producers are likely find ways to undertake the production that keeps resources employed. Check Out These Related Terms... | unemployment sources | cyclical unemployment | frictional unemployment | structural unemployment | natural unemployment | unemployment rate | Current Population Survey | labor force | unemployment problems | employment-population ratio | alternative unemployment rates | unemployment reasons | Or For A Little Background... | unemployment | factors of production | full employment | business cycles | contraction | recession | circular flow | macroeconomic goals | macroeconomic problems | And For Further Study... | labor force participation rate | unemployment, production possibilities | full employment, production possibilities | macroeconomic sectors | Bureau of Labor Statistics | real gross domestic product | macroeconomic markets | resource markets | inflation | stabilization policies | government functions | inflation | Recommended Citation: SEASONAL UNEMPLOYMENT, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2025. [Accessed: December 16, 2025]. |
