Question

Q.1 (18 points)

A. For each of the following people in the US, determine if he/she is

(i) employed; (ii) structurally unemployed; (iii) frictionally unemployed; (iv) cyclically unemployed; (v) not in the labor force but work eligible; or (vi) not work eligible

(Explanations are not required)

(a) Lin lost her job due to a recession. The economy has recovered but she still cannot find a job. Her skills are not needed in the economy any more.

(b) Tim has just relocated to Seattle, he is looking for a job with 10 interviews lined up.

(c) Celine studies at North Seattle College. She has an online business selling hand-made cards.

(d) Hans is an illegal immigrant. He works underground at a restaurant.

(e) Jane has retired. She taught Japanese language to her grandchildren at home.

(f) Andy was laid off due to a recession. He stops looking for a job.

Answer 1

Answer 1:

a. Structurally Unemployed. This is because the skills are not needed and the person needs to undergo training for getting the job.

b. Frictionally Unemployed. The person is considered to be frictionaal unemployed because the person is looking for a new job.

c. Employed. The person is considered to be self- employed.

d. Not in the labor force but work eligible.

e. Not work eligible because the person has retired.

f. Not in the labor force but work eligible. The person is considered to be discouraged worker and not counted in the labor force.