Don, who has worked as a machinist all his life, was recently laid off because the plant where he worked shut down and the jobs were outsourced. There don't seem to be any machinist jobs in the area anymore. Don is:

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Don's job loss is a result of structural unemployment, which occurs when the demand for certain types of labor decreases due to changes in technology, production, or outsourcing. The fact that there are no machinist jobs in the area anymore suggests that the need for machinists has decreased, leading to Don's layoff. Frictional unemployment occurs when workers are temporarily between jobs, while real-wage unemployment occurs when wages in a certain sector are too high for the demand of labor. Discouraged workers are those who have given up looking for work and are not included in the unemployment rate.

Don, Who Has Worked as a Machinist All His Life