Question

A nation has a workforce of 500 workers. In every month, 10 workers leave jobs, and 10 different workers tind jobs However, there are also 20 workers who lack the skills to be employed, and thus remain unemployed throughout the year There is no seasonal unemployment in this economy and the economy is consadered to be at full employment. (Enter your responses rounded to the nearest percont) %

a. In this economy, the rate ot trictional unemployment is ___ %
b. In this economy, the rate of structural unemployment is ___ %
c. In this economy, the rate of cyclical unemployment is ___ %.

Answer 1

Check the explanation

Step-by-step explanation:

a.) frictional unemployment = ( 10x100) / 500 = 2%

Laborers leaving one job will mostly set out to find another. This is frictional unemployment and is the most short term.

b.) structural unemployment = (20x100) / 500 = 4%

Structural unemployment refers to the mismatch of the demands of the economy and the available labor skills.

c,) cyclical unemployment = 0

Whenever the rate of cyclical unemployment is at figure 0, the economy is considered to be at full employment.

Answer 2

Cyclical unemployment is 0% as the unemployment is in equilibrium, so it is no recession or boom.

Structural unemployment is 20/500=4% There workers are not able to find jobs which is possible with their skill sets, thus it is part of structural unemployment,

Frictional unemployment is 10/500=2% as there is a time lag in finding the job they want and this is due to that.