Question

The sectoral shifts hypothesis claims that

	A.	there will always be a pool of unemployed workers who find jobs quickly (i.e., the frictionally unemployed).
	B.	frictional unemployment will cause workers to extend their temporary lay-offs.
	C.	there will always be a pool of unemployed workers who experience long spells of unemployment because their skills do not match those that employers are looking for (i.e., the structurally unemployed).
	D.	cyclical unemployment will always exceed frictional unemployment.
	E.	most unemployed workers will return to their previous job because the firm knows the skills of the worker.

Answer 1

The sectoral shifts hypothesis claims that there will always be a pool of unemployed workers who experience long spells of unemployment because their skills do not match those that employers are looking for (i.e., the structurally unemployed).

Answer: option (c).