Question

What happens in the labor market when the following event occurs?

Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially,______

A. Structural unemployment increases

B. there is a shortage of workers in both sectors

c. cyclical unemployment increases

D. the unemployment rate does not change

Answer 1

I would say that the unemployment rate does not change. This is because people from the fishing industry might have shifted to the travel industry hence fishing deceasing and travel increasing, then the rate is still the same.

Option D