Question

16) Which of these types of unemployment is characterized by peaks of joblessness at specific times of the year? A) seasonal B) cyclical C) frictional D) structural

Answer 1

Answer: A) seasonal

Explanation

Seasonal Unemployment- Occurs when people are unemployed at particular time of the year when demand for labor is lower than usual.

Cyclical Unemployment- A factor of overall unemployment that relates to the regular ups and downs, or cyclical trends in growth and production, that occur within the business cycle.

Frictional Unemployment- The unemployment that results from time spent between jobs when a worker is searching for, or transitioning from one job to another.

Structural Unemployment- A form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skill demanded of workers by employers.

Seasonal Unemployment occurs during specific times of the year. For example, after the holiday season retailers let go of many of their seasonal employees . Many of which were hired to accommodate higher workloads during peak seasons.

Answer 2

The correct answer is A. Seasonal.

Definition: Seasonal unemployment is one that is related to activities that are concentrated at certain times of the year (for example, holidays, summer, harvest, etc.) while the rest of the year activity is very low or non-existent.

The main characteristics of seasonal unemployment are:

1. Foreseeable: it is known what, when, and how fluctuates a certain activity during the year, so it is possible to foresee that unemployment will increase at a certain time of the year.

2. Short-term contracts: temporary contracts are used in most economic sectors with a marked seasonality. This way, the demand for workers during the period of greatest activity without a long-term commitment is covered.

3. Need to save and plan: people who work in sectors susceptible to high seasonal unemployment must save at work periods to better face with the months of unemployment.