Need help on the following question: Deermine whether each of the following woul

Question

Need help on the following question: Deermine whether each of the following would be consideredfrictional, structural, seasonal, or cyclical unemployment: a) A UPS employee who was hired for the Christmas season islaid off after Christmas (seasonal?) b) A worker who is laid off due to reduced aggregate demand inthe economy c) A worker in a DVD rental store becomes unemployed asvideo-on-demand cable service becomes     more popular d) A new college graduate is looking for employment. Thank you. Need help on the following question: Deermine whether each of the following would be consideredfrictional, structural, seasonal, or cyclical unemployment: a) A UPS employee who was hired for the Christmas season islaid off after Christmas (seasonal?) b) A worker who is laid off due to reduced aggregate demand inthe economy c) A worker in a DVD rental store becomes unemployed asvideo-on-demand cable service becomes     more popular d) A new college graduate is looking for employment. Thank you.

Explanation / Answer

A. Frictional B. Cyclical C. Structural D. Frictional Cyclical - This refers to unemployment thatrises during economic downturns and falls when the economyimproves. Keynesians argue that this type of unemployment existsdue to inadequate effective aggregatedemand. Frictional - This unemployment involvespeople in the midst of transiting between jobs, searching for newones; it is compatible with full employment. It is sometimes calledsearch unemployment and can be voluntary. New entrants(such as graduating students) and re-entrants (such asformer homemakers) can also suffer a spell of frictionalunemployment. One kind of frictional unemployment is called waitunemployment. Another type of frictional unemployment isseasonal unemployment. Structural - Structural unemployment involvesa mismatch between the sufficiently skilled workers looking forjobs and the vacancies available. Even though the number ofvacancies may be equal to the number of the unemployed, theunemployed workers lack the skills needed for the jobs — orare in the wrong part of the country or world to take the jobsoffered. It is a mismatch of skills and opportunities due to thestructure of the economy changing. Much technologicalunemployment (e.g. due to the replacement of workers bymachines) might be counted as structuralunemployment. I hope this helps. Please rate!!!

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