Are the following workers more likely to experience short-term or long-term unem

Question

Are the following workers more likely to experience short-term or long-term unemployment? Explain your answers.

a. A construction worker laid off because of bad weather

b. A manufacturing worker who loses her job at a plant in an isolated area

c. A stagecoach-industry worker laid off because of competition from railroads.

d. A short-order cook who loses his job when a new restaurant opens across the street

e. An expert welder with little formal education who loses her job when the company installs automatic welding machinery

Explanation / Answer

According to the bureau of labor statistics the person is called unemployed if he/she is aged 16 years and over and able and willing to work but are unable to obtain a work. There are four types of unemployment:

i.Seasonal unemployment – Seasonal unemployment refers to a situation where a number of people who are not able to find job during a particular season of the year.

ii.Structural unemployment – unemployment that results from workers not having the skills to obtain long-term employment.

iii.Frictional unemployment – The unemployment that results from workers searching for suitable jobs and firms looking for suitable workers.

iv.Cyclical unemployment – the unemployment that results from cyclical fluctuations in the economy.

The cyclical and structural unemployment is long-term unemployment. All other unemployment are short term

a. A construction worker laid off because of bad weather is short term unemployment. This is because the worker is having seasonal unemployment due to particular season of the year.

b. A manufacturing worker who loses her job at a plant in an isolated area is long term unemployment. This worker have little chance to called back to the plant and there is no other employment opportunity. Then this is long term unemployment.

c. A stagecoach-industry worker laid off because of competition from railroads. This is cyclical unemployment because there is not enough demand for stage couches and the firm cut down cost be laying off some worker to stay in business. Hence this is long term unemployment.

d. A short-order cook who loses his job when a new restaurant opens across the street is cyclical and long term unemployment.

e. An expert welder with little formal education who loses her job when the company installs automatic welding machinery. This is structural unemployment. The welder lacks the skill to operate advanced machinery and hence looses the job. The structural unemployment is long term unemployment.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.