Answer to Question #147728 in Macroeconomics for mathakha

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. (2) 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. 20                 

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

Q.6.1 Structural Unemployment - It may be due to lack of the co-operant factors of production, or changes in the economic structure of the society

Q.6.2Technological Unemployment. When there is automation or displacement of old technology by a new one requiring less workers than before, there is technological unemployment.

Q.6.3 Seasonal Unemployment. Seasonal unemployment results from seasonal fluctuations in demand

Q.6.4  Cyclical Unemployment.  Cyclical unemployment arises due to cyclical fluctuations in the economy     

Q.6.5 Frictional Unemployment - voluntary job change