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Furniture workers in Los Angeles lose their jobs because the

economy is in a recession and customers are buying less
furniture than before. What type of unemployment represents
the furniture workers' situation?
O Structural unemployment
O Full unemployment
O Cyclical unemployment
O Frictional unemployment

1 Answer

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Final answer:

Furniture workers in Los Angeles losing jobs due to a recession are experiencing cyclical unemployment, which varies with the economic cycle. Structural unemployment is a result of industry changes or shifts in the economy, like plant relocations or regulatory changes. Frictional unemployment occurs during the transition between jobs.

Step-by-step explanation:

The type of unemployment experienced by furniture workers in Los Angeles who lose their jobs due to a recession and a decrease in furniture sales is referred to as cyclical unemployment. Cyclical unemployment is directly related to the economic cycle of a nation; it rises during economic downturns and falls when the economy improves. Some other examples of cyclical unemployment include landscapers laid off during a recession or printers laid off due to a decrease in demand for printed materials.

On the other hand, structural unemployment occurs when there's a mismatch between the skills workers possess and the skills needed by employers. This can be due to technological changes, such as factory workers losing jobs because of plant closures and relocations, or coal miners laid off due to environmental regulations affecting the coal industry.

Frictional unemployment occurs when workers are temporarily unemployed while transitioning between jobs, such as a financial analyst voluntarily quitting a job in one city to seek similar work in another city.

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