Management Notes

Reference Notes for Management

Seasonal Unemployment – Concept, Benefits, Limitations and Examples | Macroeconomics

Seasonal Unemployment

A seasonal unemployment situation is when a temporary, regularly occurring phenomenon affects the number of available employment opportunities. Simply put, a seasonal unemployment situation occurs whenever the rate of unemployment rises during a particular season.

There are many reasons for seasonal unemployment, which affects many industries. Generally, the term seasonal refers to the occurrence of an expected and recurring situation, such as the occurrence of a particular weather station or a moment during the year when demand decreases. In order to maintain a low unemployment rate, this seasonal shift in employment figures must be addressed by the government.

Seasonal unemployment works by ensuring that the number of jobs available matches the number of employees an organization needs at various times of the year. During certain seasons, a company might need more employees than it does in other seasons, resulting in seasonal unemployment after the more lucrative season ends. In a season of seasonal unemployment, employees who work in positions that are directly related to a certain time of year or event are laid off and must find new work. Some people respond to seasonal unemployment by transitioning to a new seasonal job each time a season changes so they can continue working seasonal jobs and find employment again quickly.

Benefits of Seasonal Unemployment

The benefits of seasonal unemployment are as follows:

  1. Seasonal unemployment is fairly predictable and occurs on a regular basis.
  2. Seasonal employment may be chosen by people because they enjoy other activities when they are unemployed, such as summer jobs, hobbies, etc., that they would not participate in if the employment was all year round.
  3. Seasonal employees know that they will be employed for a limited period of time, after which they will become unemployed again. Wages are thus based on this reality.
  4. It may be considered by some professionals or students as an opportunity to build skill sets during a time of the year when they might be working or coaching elsewhere for the rest of the year. For example, internships, fixed-term employment contracts, etc.
  5. It is better than complete unemployment because the labor force would earn wages for at least part of the year. Therefore, many jobs require it.

Limitations of Seasonal Unemployment

Some of the limitations of seasonal unemployment are as follows:

  1. In general, seasonal unemployment has the same disadvantages as any other kind of unemployment. When an employee/ worker/ labor force is unable to work, they face personal hardships. However, it all depends on the employees as well. During the unemployment season, some might stay idle while others might seek other employment.
  2. Despite having a desire to work throughout the year, they may have trouble finding jobs that last the whole year or that offer long-term commitment.
  3. This kind of unemployment is also associated with a loss of production. Producers may not produce goods that are required by customers when there is seasonal unemployment. However, this cannot be interpreted as a consequence of seasonal unemployment itself. It is a consequence of an entirely seasonal industry.

Examples of Seasonal Unemployment / Seasonal Unemployment Examples

Wanda spends her summers working at Thrill City, a theme park with roller coasters, carnival games, dining options and opportunities to meet performers in character. In the summer, Wanda operates one of the park’s water rides, a roller coaster that takes guests through water rapids to cool off. Although Thrill City’s water rides close in the last week of August, the park closes in the last week of October. Wanda can take on a different position at Thrill City when her ride closes in August, but she might experience seasonal unemployment after the park closes in October. Wanda can begin looking for a new job in October so that once her seasonal position ends, she can find a new one.

Seasonal Unemployment Quiz / MCQs

[bg_collapse_level2 view=”button-orange” color=”#4a4949″ expand_text=”Show Questions ” collapse_text=”Show Answers” ]

Why don’t government planners try to end seasonal unemployment

What is the difference between seasonal unemployment and structural unemployment?

Why doesn’t the government try to end seasonal unemployment?

Why don’t government planners try to end seasonal unemployment

What is the difference between disguised unemployment and seasonal unemployment

Disguised Unemployment is a type of Unemployment condition wherein individuals work for the entire day but do not make any contribution to the total output. The marginal productivity in this type of employment is zero. Seasonal Unemployment is a type of unemployment that arises due to the seasonal changes in demand or production conditions. Seasonal unemployment happens when individuals cannot secure jobs during certain months of the year. Read More……



Thakur, M. (n.d.). Wall Street Mojo. Retrieved from Wall Street Mojo:


Leave a Comment