An example of structural unemployment is a(n):
A) autoworker who is temporarily laid off because of a decline in sales.
B) geologist who is permanently laid off because of an increase in wages won by labor unions.
C) worker at a fast-food restaurant who quits work and attends college.
D) real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.

Question

Quizplus · Accepted Answer

Structural unemployment refers to a long-term decline in demand for a particular type of labor. In this situation, the geologist was permanently laid off due to an increase in wages won by labor unions, which likely means the demand for geologists has been decreasing or there is an oversupply of geologists in the market. The other options are not examples of structural unemployment. Option A is a temporary layoff due to a decline in sales, which is cyclical unemployment. Option C is a worker leaving their job by choice, which is frictional unemployment. Option D is an individual searching for a higher-paying job in a different location, which is also frictional unemployment.

An Example of Structural Unemployment Is A(n)