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Determine whether this person or group is unemployed and what type of unemployment it is.

Juan recently graduated from college and is looking for his first job.

Juan is ________________ unemployed.

1 Answer

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Final answer:

Juan is considered frictionally unemployed since he is actively searching for his first job after graduating college. This falls within the broader category of unemployment, as defined by the Bureau of Labor Statistics.

Step-by-step explanation:

Juan, having recently graduated from college and currently looking for his first job, is considered to be unemployed. Specifically, he falls under the category of frictional unemployment. This type of unemployment occurs when individuals are temporarily out of work while transitioning from one job to another or, as in Juan's case, entering the labor force for the first time after completing their education.

The Bureau of Labor Statistics defines an individual as unemployed if they meet three criteria: they must be jobless, actively seeking work, and available to take a job. Since Juan is actively looking for work and available to start, he meets the criteria for being classified as unemployed. Frictional unemployment is a natural and healthy part of a dynamic economy, as it includes people like Juan who are between jobs or seeking their first employment.

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