Question

Alex left his job as a plumber when his wife took a position in another region. The quantity of plumbing services demanded is considerably lower in the new region, in part because of high union-negotiated wages. He would like to work at the high union wage but remains unemployed due to a lack of plumbing jobs. Becky just graduated from college and is looking for a full-time position with an investment banking firm. Automobile demand has fallen during a recent recession, and Eileen has been laid off from her job on the assembly line.

Answer 1

The unemployment type is structural in case of Alex; frictional in case of Becky; and cyclical in case of Eileen.

Step-by-step explanation:

Assuming that the question requires identifying the type of unemployment in each case, the responses are as follows.

In case of Alex, it is structural unemployment, which occurs due to a mismatch between workers' skills and the demand for those skills in an economy. In the new region, the demand for plumbing skills is considerably lower, so there is a lack of plumbing jobs. Hence, Alex cannot find a job.

In case of Becky, it is frictional unemployment, which occurs for temporary periods, including when people are searching for jobs. It is temporary as Becky, who is a college graduate, is likely to find a full-time job soon.

In case of Eileen, it is cyclical unemployment, which is caused by a downturn of the business cycle. There is a recession that has reduced automobile demand, causing Eileen to lose her job at the assembly line.