Determine the type of unemployment that each of the following individuals are fa

ID: 1115242 • Letter: D

Question

Determine the type of unemployment that each of the following individuals are facing:

a. Archie was just laid off from his job at the automobile plant due to a temporary lack of orders.

b. Barbara just graduated from college and is searching for her ideal job.

c. Carl was a telegraph worker who lost his job with the advent of the telephone.

d. Debbie is employed with a lawn care company in the spring, summer, and fall, but she is without work in the winter months.

e. Eric was a bookkeeper who lost his job when his company purchased computers with accounting software.

f. Frederica is a teacher who just completed her Masters in Administration, so she is unemployed while she seeks her first job as a school principal.

Unemployment can be:

- Cyclical if there is a recession or downturn in economic activities, or seasonal lack of demand for workers,

- Frictional which is caused by new job-seekers looking for jobs, or

- Structural which is caused by expectations and skill-mismatch between skill-sets required by employers and skill-set possessed by workers.

Therefore:

(a) Archie - Cyclical unemployment

(b) Barbara - Frictional unemployment

(d) Debbie - Cyclical unemployment

(e) Eric - Structural unemployment

(f) Frederica - Frictional unemployment

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