Question

Which one of these people is considered to be frictionally unemployed?

a) Jordan graduated from law school and is interviewing with various law firms.
b) Thomas’s job as a landscaper is on hold until the spring.
c) Sonya dropped out of school and now fails to meet the minimum requirements for her job.
d) Eva lost her job at a major interior design firm during the recession in the 1980s.

Answer 1

Jordan, the law school graduate interviewing with law firms, is considered frictionally unemployed. Frictional unemployment is a natural part of the job search process. Other types of unemployment include cyclical and structural, attributed to different economic conditions or changes in industry.

Step-by-step explanation:

The individual who is considered to be frictionally unemployed is Jordan, who graduated from law school and is interviewing with various law firms. Frictional unemployment occurs when workers are between jobs, either by choice or when they are searching for a job that suits their skills and interests. This type of unemployment includes new entrants to the labor force, like recent graduates who are looking for their first job.

• Cyclical unemployment applies to landscapers laid off during a recession.
• Structural unemployment pertains to coal miners laid off due to EPA regulations that shut down coal fired power plants, printers affected by the shift to online advertising, and U.S. factory workers who lose their jobs when plants move abroad.
• Frictional unemployment includes a financial analyst moving to Arizona for similar work.

An increase in the unemployment rate is not necessarily a bad thing for a nation as it may reflect a growing economy where more individuals are entering the labor force searching for jobs, which is a natural aspect of a dynamic labor market.

Answer 2

Jordan, who is interviewing with law firms after graduating from law school, is considered frictionally unemployed. This is because frictional unemployment occurs when individuals are in between jobs or entering the workforce for the first time. Cyclical unemployment is due to economic downturns, while structural unemployment arises from a mismatch of skills or economic shifts.

Step-by-step explanation:

Among the individuals described, Jordan, who graduated from law school and is interviewing with various law firms, would be considered frictionally unemployed. Frictional unemployment is a type of unemployment that occurs when a person is transitioning from one job to another or is entering the workforce for the first time, such as recent graduates searching for their first job. This type of unemployment is typically short-term and voluntary.

In comparison, cyclical unemployment is related to the economic cycles and is caused by a downturn in the economy, such as layoffs during a recession. On the other hand, structural unemployment occurs when there's a mismatch between the skills of the workforce and the skills demanded by employers, often caused by technological changes or shifts in the economy.

For example, landscapers laid off due to a recession would be experiencing cyclical unemployment, while coal miners laid off because of shifting regulations affecting coal-fired power would face structural unemployment, as these jobs may not return even when the economy improves. Similarly, factory workers whose jobs move overseas due to changes in where products are made would also face structural unemployment.