In each of the following questions, classify each of the unemployed individuals
ID: 1253179 • Letter: I
Question
In each of the following questions, classify each of the unemployed individuals as representing one of frictional, structural, cyclical, or seasonal unemployment.a)Jack Stiring-Wheele is an autoworker for GM in Boisbriand who has been laid off because of the recent sharp decline in GDP (both in Canada and the U.S.), which has resulted in a severe decrease in auto sales.
b)Cole Minor, a miner for Inco Ltd., finds he can no longer get work in the mining industry because of new automated mining techniques.
c)Edge Yucation, from Montreal, is unable to locate a job after finishing CEGEP and entering the labour force.
d)Newman, a letter carrier for the United States Postal Service in New York City, finds himself unemployed because of the increased trend of sending mail using faxes and e-mail.
e)Guy “The Ski” Thibodeau, a ski instructor and ski reporter for CFCF TV in Montreal, finds himself unemployed during the months of April to November each year
f)James Black and Howard Decker (i.e. Black & Decker), both skilled carpenters, find themselves out of work because of a housing slump brought about by higher interest rates and a mild economic recession.
Explanation / Answer
A - Cyclical, he is unemployed due to a change in the business cycle. B - Structural, the industry changed and left him behind. C - Probably Frictional which is short term structural unemployment. D - Structural, change in the industry E - Seasonal, he has a seasonal job (works when there is snow) so when there is no snow he is unemployed. F - Cyclical - due to recession Then general rules are: Cyclical = due to change in business cycle Structural = due to labor/job skill mismatch Frictional = "short term" structural Seasonal = Job one holds only exists in some seasons of the year.
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