Suppose that the number of jobs in the fishing industry decreases but the number of jobs in the travel industry increases. Initially,__________ .
A) cyclical unemployment increases
B) the economy remains at full employment
C) structural unemployment increases
D) there is a shortage of workers in both sectors

Question

Quizplus · Accepted Answer

A decrease in jobs in one industry (fishing) and an increase in another industry (travel) suggest a shift in the labor market from one sector to another. Therefore, structural unemployment increases due to a mismatch between the skills required by employers in the fishing industry and those available among the workers who have lost their jobs. This shift, however, does not suggest an overall decrease in the number of jobs, nor does it suggest a cyclical imbalance in the economy.

Suppose That the Number of Jobs in the Fishing Industry