Question

Njal had been working as a chainsaw operator for the past 15 years when his company decided to upgrade its equipment from chainsaws to timber harvesters, which are large pieces of equipment that require a new set of skills. The company was unwilling to train existing workers on the new equipment, so Njal needed to find another source of income. Match the scenarios Njal goes through on his way from one job to the next with the relevant economic terms. Some answers will be used more than once. Some answers will be used more than once.

a. When company upgrades its operations, it will no longer employ chainsaw operators like Njal. Njal is not trained to do what the company needs, so he is laid off.
b. After looking for work for several months, Njal cannot find work for a chainsaw operator, so he stops looking for three months.
c. Njal signs up for a six month government program that Will train him to be a computer-repair specialist.

1. Frictional unemployment
2. Not in the labor force
3. Employed part-time for economic reasons (counted as part of IJÆ unemployment)
4. Structural unemployment
5. Part of labor force

Answer 1

A. Structural unemployment

B. Not in the labour force

C. Not in the labour force

Step-by-step explanation:

a.) due to an upgrade in operations njal is no longer able to do what is required in the job description. this is an example of structural unemployment. since what the company needs and what he can offer as an employee are no longer matched.

b.) If Njal stops looking for work after 3 months because he has been unsuccessful in getting one, it shows he is not in the labour force anymore. He is already discouraged.

c.) During the 6 months that he has gone for training Njal is not in the labour force. this is because he is unemployed in this period and he is also not seeking for employment.