Identify each of the following by structural, seasonal, cyclical, or frictional
ID: 1105462 • Letter: I
Question
Identify each of the following by structural, seasonal, cyclical, or frictional unemployment.
a. Competition increasing the number of substitutes for electronic devises such as iPad, Kendal, Microsoft Surface…
b. Outdoor construction during winter rain.
c. A person who voluntarily attends college to modify skills.
d. Demand for personal computers decreased.
e. The increase in demand for network specialist, forcing people to change careers.
f. A snow ski instructor during the summer time.
g. The replacement of horse carriages by automobiles
h. A person who leaves work to acquire marketable skills.
i. The decrease in manufacturing of cell phones by many firms in the industry.
j. New methods of operation lead to mass labor reorganizations by many firms.
Explanation / Answer
(a) frictional unemployment- because due to increase in competition and thereby increase in substitutes of electronic devices those who are working in these will rush for more better job opportunities than working in the earlier company in hope of better salary and increments and so may face frictional unemployment in finding the working condition of their choice.
(b) seasonal unemployment - because those who are working in outdoor construction will be unemployed during the whole season of winter rain when the construction has to stop till the season ends.
(c) frictional unemployment - he will be unemployed till he is in training to modify his skills and after that will find his desired job that suits his skills.
(d) cyclical - due to the recession when the demand for the commodity falls those firms who were producing at their optimum level has to lower the production and therefore has to cut the cost .this cause mass unemployment.
(e) structural unemployment - because network specialist is a highly complex and skilled job so those who are not efficient enough may be forced to change job
(f) seasonal - because probably after winter there will be very less tourist and so during the summer season the instructor will remain unemployed until the next winter to come.
(g) structural - because those who were employed in horse carriage will find them unemployed because there is the mismatch between the jobs available in the modern transportation system of cars and buses and their traditional skill of running horse carriage.
(h) frictional unemployment - because he has leave one job only to acquire more markatableskills to further find a good job.
(i) cyclical - due to economic slow down when the when the demand falls the manufactrurer has to decrease its manufacturing which will cause to give up the extra labour to cut cost and survive till the growth catch up.
(j) structural - due to introduction of computer in the banking sector there was a mass labour reorgination to become efficient .old and unskilled were fired and new with required skilled were recruited.