00:01
So here we're going to demonstrate an understanding of different kinds of unemployment, right? for the first person, we have layoffs after an economic downturn, right? we're given this story about how a manufacturing company is doing poorly because of the state of the economy.
00:20
This is cyclical unemployment, right? it's cyclical unemployment because, again, we're thinking about the economic downturn.
00:31
Anything that is associated with the performance of the economy, whether the economy is booming or whether the economy is slumping, is associated with cyclical employment.
00:41
If this manufacturing company was laying people off because its products were no longer in demand, then we would have structural unemployment.
00:49
But because the layoffs are resulting because of the poor performance of the economy, that means it is cyclical unemployment, right? b, we have just graduated and waiting to start.
01:09
This is frictional unemployment, right? it is frictional unemployment because it represents this sort of personal level friction of getting into a job, right? there's nothing here about the economy being in a good or bad shape.
01:25
There's nothing here about the consulting industry growing or expanding.
01:28
This is just this frictional situation where julie found a job, but the job she wants doesn't quite line up.
01:35
You know, their schedules don't quite match.
01:37
So we've got this sort of scheduling friction, and so there's going to be like a month or two before she actually starts her job, right? this is the definition of frictional.
01:46
And i think it's the definition of frictional because i rule out structural and cyclical very easily here, right? there's nothing about the state of the economy.
01:54
There's nothing about the industry or the type of work she's doing...