Which of the following would cause frictional unemployment to fall? ? a decline in trade union membership, causing a fall in the market wage ? an improvement in employee-employer matching software that shortens the process by which unemployed workers find prospective employers ? a law requiring businesses to provide a year's notice before laid-off workers leave their jobs ? a booming economy ? less generous unemployment benefits
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Step 1: Define frictional unemployment — it is unemployment that arises from the time workers spend searching for new jobs or transitioning between jobs (search/matching frictions). Show more…
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Economics Part 2: Types Determine the category of unemployment for each person. A. Frictional Unemployment B. Structural Unemployment C. Seasonal Unemployment D. Cyclical Unemployment E. Not in the labor force and not unemployed 17. The snow has thawed and Adam has lost his job at the Vail Ski Resort Company. 18. After many years of teaching, Bernice has retired. 19. Shakira, a skilled glassblower, became unemployed when a new machine does her job faster. 20. Devon and Justin lost their jobs at the sock factory in Ft. Payne, Alabama, because the business was outsourced to Mexico. 21. Jake, a computer programmer, is laid off from work for lack of business orders. 22. Virginia, a literary editor, leaves her job in New York to look for a new job in San Francisco. 23. Twinkle the elf lost his job in January. 24. Charlie is a full-time student at State University majoring in engineering. 25. Mitch is leaving his part-time job to seek a job that offers full-time employment. 26. Workers at GM and Ford plants are losing their jobs due to slow car sales.
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12. Name the type of unemployment occurring in each of the causes below. (a) Frank recently lost his job as the computer manufacturing company he works for recently downsized after poor sales and poor performance of the economy during the last year: Type of unemployment: frictional cyclical structural ) (b) Julie just recently graduated from college and is spending the summer traveling before she begins a job with a consulting firm in the fall Type of unemployment: frictional cyclical structural (c) Tom recently lost his job as the steel manufacturing firm he worked for moved their plant overseas The other steel plants in the nation have been also been following this trend. Type of unemployment: frictional cyclical structural The full-employment or natural rate of unemployment assumes there is no among the three types of unemployment: unemployment
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The components of the unemployment rate In the following table, determine what type of unemployment best describes each situation. Frictional Cyclical Structural Unemployment Unemployment Unemployment Kevin was laid off as a teacher because of government budget cuts, made necessary by a fall in tax revenues caused by a recession. Crystal's contract ended last week, and her next contract doesn't start until next week. Susan was a highly skilled instrument maker, but she hasn't been able to find work in the field since her workshop closed due to competition from instrument makers in China. Imagine an economy where the structural rate of unemployment is 7% and the frictional rate of unemployment is 3.5%. In this economy, the natural rate of unemployment would be and the cyclical rate of unemployment would be . (Select ?% if the rate cannot be determined from the information given.)
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