In Tommy's town, things were changing. His dad, a factory worker, had lost his job. This was strange to Tommy because his dad was always hardworking. His mom explained that his dad was not alone; many people were losing jobs. This was because the town was experiencing 'unemployment'.
Unemployment, she said, was when people who can and want to work are unable to find a job. She mentioned the 'unemployment rate', which tells us how many people in a place are unemployed. The higher the rate, the more people without jobs.
There are different types of unemployment. When a factory like Tommy's dad's shuts down because it's not making enough money, that's 'cyclical unemployment'. If someone loses a job because their skills are no longer needed, it's called 'structural unemployment'.
Unemployment can have effects on families and the economy. It means less money for families, leading to less spending. This, in turn, can cause a 'recession', where the overall economy slows down.
But, there's hope. Schools and organizations help people learn new skills to find different jobs. These efforts can lower the unemployment rate. Tommy felt better knowing his dad could learn new skills and find another job.