-

This article explains the different kinds of unemployment and discusses the demand management policies. The paper argues that among the different kinds of unemployment the weight and importance of the structural unemployment is higher than other kinds of unemployment. The article refers to different studies concerning the effects of employment growth in different economic sectors on the unemployment rate, while mentioning the structural transformation of employment in different sectors.
to understand which sector has a stronger effect on unemployment, two models are estimated. According to the findings, during the 1971 -1990 period, the growth in industrial sector has no effect on unemployment rate while the growth in the service sector has significant effects on its reduction. Also the increase in the value added of the industrial sector has not decreased the unemployment rate, while the increase, in the service sector value added, and has a significant effect on the reduction of unemployment rate.