Question

Macroeconomic

Use the following news clip to work Problems sand 7 Tough Search for Workers as Hiring Lage Job Openings Job openings increased 82,000 to 5.43 millior, aed employers are having a tough time finding quaisicd workers to fill them. Hiring to fill openings increased 30,000 to 5.2 million. An economist commented that job openings are high relative to unemployment which is a sign of a mismatch between the skills de- manded and the skills available. Source: The New York Times, January 13, 2016 6. If the labor market is working properly, why would there be any unemployment at all? 7. Are workers who cannot find jobs because of mis- matching in the labor market counted as part of the economy's structural unemployment or part of cyclical unemployment?

Answer 1

Ans. 6) Even if the labor market is working properly , there would still be structural and frictional unemployment also known as Natural Level of Unemployment because economy is dynamic and few people would always remain unemployed.

7) This is counted as a part of economy's Structural Unemployment.

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