. Classify the people described in each of the following scenarios as either fri
ID: 2549953 • Letter: #
Question
. Classify the people described in each of the following scenarios as either frictionally, structurally, or cyclically unemployed. 1. Phil is currently unemployed because the tire factory where he used to work installed robots, which replaced 500 laborers, including Phil. 2. Jessica is unemployed because she is in the process of reentering the labor force after taking time off to have a baby. 3. Mary is unemployed because she lost her job at McDonald's after the state increased the minimum wage. 4. Barry is unemployed because he was laid off by the automobile factory when the economy entered a severe, prolonged recession. 5. Sandy left her former job at an accounting firm a month ago. She is in the process of interviewing for a similar position at six different accounting firms, although she has not accepted a job yet.Explanation / Answer
Answer
1.Phil is structurally unemployed.
because it happens when there are changes to the labor market and installing robots will change the the labor market.
2.Jessica is frictionally unemployed.
Frictional unemployment is unemployment due to the time workers spend in a job search. Since Jessica is reentering the labor force, she is engaged in a job search, therefore making her frictionally unemployed.
3.Mary is structurally unemployed.
Structural= changing minimum wage is structural
4.Barry is cyclically unemployed.
Cyclical = because of the time in the business cycle was a recession.
5.Sandy is frictionally unemployed.
Because she is searching for the "match" frictional accounts the time it takes to match employers and employees.
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