3. Types of unemployment The three people described in the following table are c
ID: 1119755 • Letter: 3
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3. Types of unemployment The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics Identify each person in the table as structurally, frictionally, or cyclically unemployed. Unemployment Type Larry recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. Megan just moved with her husband to Portland, Oregon. She's looking for a job as a paralegal. Susan is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job. Structural Frictional Cyclical The following table shows data on frictional, cyclical, structural, and total unemployment for an economy. Rate Unemployment Type (Percent) Frictional 3.0 Cyclical0.0 1.0 4.0 Structural Total unemployment True or False: This economy is currently at its natural rate of unemployment. True FalseExplanation / Answer
Answer.) Types of unemplyment:-
1.) Larry recently lost his job as a dishwasher. Minimum-wage legislation keeps employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work --> STRUCTURAL UNEMPLOYMENT
2.) Megan just moved with her husband to portland, oregon. She's looking for a job as a paralegal --> FRICTIONAL UNEMPLOYMENT
3.) Susan is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job --> CYCLICAL UNEMPLYMENT
4.) TRUE. Economy is currently at its natural rate of unemployment. Note that in the given data,
Total unemployment = 4% = Frictional unemployment + Structural unemployment
The natural rate of unemployment is determined by looking at the rate people are finding jobs, compared with the rate of job separation (i.e. People quitting). In any given period, people are either employed or unemployed. As a result, the sum of structural and frictional unemployment is referred to as the natural rate of unemployment also called "full employment" unemployment rate.
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