Question

29. What type of unemployment (cyclical, frictional, or structural) applies to each of the following: a. landscapers laid off in response to drop in new housing construction during a recession. b. coal miners laid off due to EPA regulations that shut down coal fired power a financial analyst who quits his/her job in Chicago and is pursing similar work in Arizona d. printers laid off due to drop in demand for printed catalogues and flyers as firms go the internet to promote an advertise their products. e. factory workers in the U.S. laid off as the plants shut down and move to Mexico and Ireland. C.

Answer 1

Cyclical unemployment is caused due to fall in the level of demand in the economy, Structural Unemployment is caused when the old skills become reduntant and new training is needed, Frictional Unemployment occurs when a person is looking for new jobs.

a. Cyclical Unemployment. Since the landscapers are laid off because of fall in the level of demand in the economy.

b. Structural Unemployment. Since regulations have come up in the market and new methods needs to be acquired.

c. Frictional Unemployment. Since the person has quit the job and looking for new job, this is frictional type of unemployment.

d. Strucutural Unemployment. This is unemployment due to old techniques becoming reduntant.

e. Cyclical Unemployment. Since the demand falls becuse plant has moved out, it is cyclical type of unemployment.