Why is structural, frictional and seasonal unemployment supply side related?
Is structural not caused by one industry declining meaning demand isn't enough in that industry, hence it's demand related? Also, if seasonal relates to different goods being demanded during different seasons, how is that also related to supply?
Labour is a factor of production. The more Labour 'input' into a product the higher supply. If Labour's quantity increases through lets say immigration, LRAS will shift to the right. If the price of labour increases, SRAS will shift left.
If there is a lower demand of Labour lets say because of seasonal unemployment that will shift the demand curve of the Labour market diagram to the left. This will decrease wages and amount of people employed which will shift SRAS and potentially LRAS as it also affects the amount of Labour supplied in an economy. Supply will shift but demand will contract as there will be higher prices which is why its supply side.
If there is a lower demand of Labour lets say because of seasonal unemployment that will shift the demand curve of the Labour market diagram to the left. This will decrease wages and amount of people employed which will shift SRAS and potentially LRAS as it also affects the amount of Labour supplied in an economy. Supply will shift but demand will contract as there will be higher prices which is why its supply side.
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