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Types of employment NOT subject to QPIP premiums:

a) Seasonal employment
b) Employment in the manufacturing sector
c) Temporary employment
d) Employment in the service industry

1 Answer

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Final answer:

Cyclical unemployment applies to landscapers affected by a recession, while structural unemployment fits coal miners affected by regulations, printers due to technological shifts, and factory workers due to globalization. Frictional unemployment is seen in the case of a financial analyst relocating for a similar job.

Step-by-step explanation:

The types of unemployment each scenario corresponds to are as follows:

  • Cyclical unemployment is exemplified by landscapers laid off due to a recession reducing demand for new housing construction.
  • Structural unemployment occurs with coal miners losing jobs because of EPA regulations leading to the closure of coal-fired power plants.
  • A financial analyst seeking similar work after relocating from Chicago to Arizona is an example of frictional unemployment.
  • Structural unemployment also applies to printers laid off due to a shift from printed materials to online promotion and advertising.
  • Factory workers who are laid off as production moves from the U.S. to Mexico or Ireland are facing structural unemployment due to changes in the global economy.

Regarding the natural rate of unemployment, not every increase in the unemployment rate is necessarily bad for a nation. For instance, an increase may reflect a growing number of individuals seeking better opportunities, known as frictional unemployment, which can indicate a dynamic and evolving job market.

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