Question

Identify the type of unemployment for the following scenarios:

1) Caroline just graduated from college and is looking for a full-time position with an investment banking firm.
2) Frances is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.
3) Antonio recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. He continues to look for a job, but he's considering going back to school for vocational training.

a) Structural
b) Frictional
c) Cyclical

Answer 1

Caroline's job search represents frictional unemployment, Frances's job loss in a recession is an example of cyclical unemployment, and Antonio's unemployment due to changes in legislation is structural unemployment.

Step-by-step explanation:

Each scenario described represents a different type of unemployment:

Caroline searching for a job post-graduation is an example of frictional unemployment. This occurs as she takes the time to find a position that matches her qualifications and desires.

Frances, the real estate agent experiencing a downturn due to a recession, is facing cyclical unemployment. This is linked to the economic cycle and temporary downturns in demand within her industry.

Antonio, who lost his job due to a rise in the minimum wage and is considering additional training, is experiencing structural unemployment. This is due to changes in the economic structure that affect the demand for certain skills, such as wage legislation influencing employer hiring practices.

These scenarios are all based on key concepts in understanding the labor market and economic health. Frictional unemployment reflects short-term transitions, cyclical unemployment is tied to economic downturns, and structural unemployment stems from deeper changes in the economy.

Answer 2

1) b)Frictional

2) c) Cyclical

3) a) Structural

Step-by-step explanation:

1) Caroline just graduated from college and is looking for a full-time position with an investment banking firm.

FRICTIONAL.

This is a situation of frictional unemployment, which occurs when there is mobility of labor and workers. It occurs in a natural situation, at the time when individuals are looking for a job.

2) Frances is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.

CICLYCAL.

This is a situation that occurs when the economy of a locality cannot sustain the condition of full employment, it can occur in a situation of slow economic growth or certain setbacks.

3) Antonio recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. He continues to look for a job, but he's considering going back to school for vocational training.

STRUCTURAL.

Structural unemployment occurs when there is not a sufficient number of jobs in a given sector, which can result from several different variables, such as the incompatibility between the vacancies available and the skills of workers.