Read the scenario and label the type of unemployment as fric

Read the scenario and label the type of unemployment as frictional, structural or cyclical and explain why? 1. I am a farmer but the demand for my line of work is outdated and I am searching for work. 2. You just got fired from your job and you are searching for a new job. 3. The economy has just gone into a recession and consumers are not buying baseball bats which I construct so I have lost my job. 4. I graduate from college and I am searching for a job. 5. I was a blue collar worker in Texas. Ever since the North America Free trade Agreement (NAFTA) that opened trade between the US, Canada and Mexico happened, I have beern looking for work. 6. Voluntarily left my job as I wanted to search for another job. 7. I am a great seamstress but the demand for my work is declining and I am searching for 8. A stock person who is laid off by a department store because retail sales across the country 9. Automobile workers in Detroit are unemployed because robots are now being used on work. have decreased. assembly lines.

Solution

Frictional unemployment is a result of the people in the economy moving from one job to another.

Structural unemployment exists due to a change in the production process in any industry. For example: due to a change in technology in production.

Cyclical unemployment relates to the peak and lean of working business cycles. That is, the unemployment is low during peak season while it returns with an onset of a lean season in the business cycle.

1. Outdated line of work implies a change in production processes, causing the farmer to lose work opportunities. Thus, structural unemployment.

2. Moving from one job to another, that is, frictional unemployment. It is the time, money and efforts that the worker will now have to extend to find a new job after being laid-off.

3. Recession implies a lean business, that is, cyclical unemployment. The employment is likely to increase with an improvement in the economy that is, when it bounces back from recession.

4. None of the mentioned form of unemployments. No criteria for defining any of the three matches the scenario.

5. This is a form of a structural unempoloyment since the opening up of trade has changed employment opportunities as a result of a change in required skill sets after the trade agreement has taken place. New jobs have now become available with different skill requirements.

6. Frictional unemployment, as the worker moves from one job to another.

7. This is a form of structural unemployment, because the demand for requirement skill set has changed, causing the seamstress to lose her job due to change in industry work processes.

8. This is a form of cyclical unemployment because the effect of a lean business is having an effect on the employment. That is, the falling demands (lean business cycle) result into unemployment.

9. This is a form of structural unemployment, that is, a change in industry\'s work setting has had an impact on the job of a worker. The fall in demand for the worker\'s contribution as a result of new technological advancement is what makes him structurally unemployed.