3. Types of unemploymentThe three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics.Identify each person in the table as structurally, frictionally, or cyclically unemployed.Unemployment TypeRosa is a physician who has decided to relocate to California to be closer to her family. She is currentlyinterviewing with several prestigious hospitals in the San Francisco Bay Area.Nick recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keepslocal employers from adding more of the low-skill positions for which he qualifies, so he has been unable.to find work. He continues to look for a job, but he's considering going back to school for vocationaltraining.A recent recession has reduced the number of visitors to a local theme park. The park has had to lay offmany of its employees, including Alyssa.The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.Unemployment TypeFrictionalCyclicalStructuralTotal unemploymentRate(Percent)3.10.01.04.1Structural FrictionalOCyclicalO Total unemploymentTrue or False: This economy is not currently at its natural rate of unemployment.True4.1False

Answered: The three people described in the…

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3. Types of unemployment
The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics.
Identify each person in the table as structurally, frictionally, or cyclically unemployed.
Unemployment Type
Rosa is a physician who has decided to relocate to California to be closer to her family. She is currently
interviewing with several prestigious hospitals in the San Francisco Bay Area.
Nick recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps
local employers from adding more of the low-skill positions for which he qualifies, so he has been unable.
to find work. He continues to look for a job, but he's considering going back to school for vocational
training.
A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off
many of its employees, including Alyssa.
The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.
Unemployment Type
Frictional
Cyclical
Structural
Total unemployment
Rate
(Percent)
3.1
0.0
1.0
4.1
Structural Frictional
O
Cyclical
O

Total unemployment
True or False: This economy is not currently at its natural rate of unemployment.
True
4.1
False

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Step 1

When there is a mismatch between the skills that the jobless people possesses and the jobs that are accessible on the market, structural unemployment results. Long-term structural unemployment is brought on by significant alterations in the economy.

Unemployment that occurs as a result of workers looking for new employment or changing occupations is referred to as "frictional unemployment." Since it is a component of natural unemployment, it exists regardless of whether the economy is thought to be at full employment.

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