Question

2. For each, state whether the unemployment is structural, frictional, seasonal or cyclical.

a. As the United States becomes a more high-tech producer, labor-intensive factories no longer need as many workers

b. Unemployment rises as output in the economy slows.

c. Unemployment rate rises as the tourism months come to an end.

d. As it becomes more acceptable for mothers to work, more women enter the labor market looking for work. The unemployment rate rises.

e. The demand for workers in the southwest increases as more people search for work in the northeast.

Answer 1

a) structural unemployment

( Using more capital implies a structural change in production.lt also represents advancement in technology. Unemployment resulting from Industrial re organisation as a result technological advancement comes under the category of structural unemployment.)

b) cyclical unemployment

( Output slow down in economy happens during recession and depression which are the phases of business cycles. Thus, it's an example of cyclical unemployment.)

c) Seasonal unemployment

( Here ,employment opportunities exist only during the tourism months ( season) and unemployment happens for the rest of the months . So unemployment is seasonal.)

d) structural unemployment

( As more women enter job market, labour force increases. Competition for the jobs also Increases.structural changes happen in the labour market.Thus, it's an example of structural employment.)

e) Frictional unemployment.

( Here, unemployment happens due to more people wanting to work in north west. People are in the process of moving from one job to another. So it's an example of frictional unemployment.)