Answer to Question #146667 in Macroeconomics for Prince Chauke

Question

Question 6

What type of unemployment does each of the following represent? Explain your answers.

Q.6.1 Workers at a clothing factory lose their jobs when the firm relocates to another province.

Q.6.2 Workers at a factory making floppy disks lose their jobs when the firm goes under due to competition from USB’s.

Q.6.3 Migrant farm workers’ employment is terminated when the harvest is finished.

Q.6.4 Workers at the car plant are laid off as a result of a slump in motorcar sales.

Q.6.5 Worker decides to resign from his firm to find himself, so he can follow his passion and apply for a different job in a near future.

Answer 1

Question6

Q.6.1 Structural unemployment. This is because workers are compelled to lose their job due to some distance relocation of the factory. They find it challenging to avail themselves to the factory.

Q.6.2 Structural unemployment. Workers lose their job due to a competition in the business enterprise consequently much less profit to pay it's workers.

Q.6.3 Seasonal unemployment. This is because the employees lost the job right away the harvest was done.

Q.6.4 Cyclical unemployment. This is because the people lose their job due to a hunch in the motor vehicle sales.

Q.6.5 Frictional unemployment. The worker volunteers to resign from his job to look for higher one.