Question

Below, you are introduced to four different unemployed workers and provided with information about their personal unemployment situation. You will classify these workers as cyclically unemployed, frictionally unemployed, or structurally unemployed.

Azizur: “I am a stand-up comedian. Well, I was a stand-up comedian. I lost my job during the last recession, and I still haven’t found work. This isn’t a joke.”

Casey: “I used to repair portable CD players, like the Sony Walkman. Do you remember the Sony Walkman? Well, anyways, I used to repair those. But there isn’t much demand for that skillset anymore.”

Rachel: “I am not working right now, but I’ll be back to work in November. I am a ski instructor…which is kind of hard to do when there is no snow.”

Carlos: “I just graduated from Ohio State with a double major and pretty serious resume. I’m applying for a bunch of jobs….and waiting to be called back. This is so frustrating.”

Azizur is actively looking for a job. Is Azizur cyclically, frictionally, or structurally unemployed?

Casey is actively looking for a job. Is Casey cyclically, frictionally, or structurally unemployed?

Rachel is actively looking for a job. Is Rachel cyclically, frictionally, or structurally unemployed?

Carlos is actively looking for a job. Is Carlos cyclically, frictionally, or structurally unemployed?

Answer 1

Azizur lost the job during recession and isn't able to find another one. This would be the example of cyclical unemployment wherein the people lose jobs because of the trade cycle or business cycle. Here also Azizur lost the job because of recession.

Casey used to repair portable CD players , which are now almost obsolete technology. This means that Casey is structurally unemployed ie the type of unemployment which occurs because there is a change in structure of the economy.

Rachel is a ski instructor which means her job is not available throughout the year. The type of job which is available according to seasons is seasonal unemployment or a part of frictional unemployment. Hence Rachel comes under frictional unemployed. This is the type of unemployment which occurs between the time when one changes jobs.

Carlos is new to the job market and is still waiting for the job. This would be a type of frictional unemployment ie the waiting time for the job. Hence Carlos is frictionally unemployed.