Identify each person below as structurally, frictionally, or cyclically unemployed.

1) A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off many of its employees, including Yvette.

2) Musashi 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.

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

Question

Business

Abigail Rivas

15 January, 10:23

Identify each person below as structurally, frictionally, or cyclically unemployed.

1) A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off many of its employees, including Yvette.

2) Musashi 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.

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

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Answers (1)

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Astro · Answer 1

Part 1. Unemployment due to recession is Cyclical Unemployment.

Part 2. Mushashi recently lost her job because of Structural Unemployment.

Part 3. Rina is unemployed due to Frictional unemployment in the economy.

Explanation:

Part 1. A cyclical unemployment is the unemployment for a specific time duration and is inevitable due to serious issues across the country. Like nowadays, countries are suffering from great recession of all times recorded due to Corona-virus pandemic. One can assume that we will get rid of it sooner, so it is cyclical.

Part 2. Musashi is unemployed due to lower jobs demand of the skills that she possesses in the economy. Such type of unemployment that resulted because of the changes in the demand of the skills required is often referred to as structural unemployment.

Part 3. The frictional unemployment is the type of unemployment which exists in every economy because it occurs due to the process of employees shifting to other jobs by moving from one to another which is the case of Rina. She is now trying to shift to full-time position as she has graduated from college.