The article discusses how unemployment volatility is mainly influenced by variations in the rate at which people leave unemployment. By analyzing data on short-term unemployment, it was found that most of the volatility comes from changes in exit rates. However, when considering both short-term and long-term unemployment, it was discovered that the volatility of long-term unemployment plays a bigger role in overall unemployment volatility. This means that the longer someone is unemployed, the more impact it has on the overall volatility of unemployment. Additionally, when accounting for different types of unemployment, the expected income losses from being unemployed increase significantly.