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 TypeStructuralFrictionalCyclicalFelix 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. Janet just moved with her husband to Portland, Oregon. She's looking for a job as a paralegal. Automobile demand has fallen during a recent recession, and Megan has been laid off from her job on the assembly line. The following table shows data on frictional, cyclical, structural, and total unemployment for an economy. Unemployment TypeRate (percent) Frictional3.0Cyclical0.0Structural1.0Total unemployment4.0 True or False: This economy is currently at its natural rate of unemployment.

1. This is structural unemployment because structural unemployment arises due to the mismatch…

Answered: The three people described in the…

ENGR.ECONOMIC ANALYSIS

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Chapter1: Making Economics Decisions

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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	Structural	Frictional	Cyclical
Felix 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.
Janet just moved with her husband to Portland, Oregon. She's looking for a job as a paralegal.
Automobile demand has fallen during a recent recession, and Megan has been laid off from her job on the assembly line.

The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.

Unemployment Type	Rate (percent)

Frictional	3.0
Cyclical	0.0
Structural	1.0
Total unemployment	4.0

True or False: This economy is currently at its natural rate of unemployment.

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