In 2013,Caterpillar laid off employees who produced mining machinery at its South Milwaukee plant.The laid-off employees who were not able to find jobs at another factory due to a permanent decline in demand in the mining industry would be considered
A)structurally unemployed.
B)frictionally unemployed.
C)seasonally unemployed.
D)cyclically unemployed.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a long-term decline in demand for a particular industry or occupation due to changes in the economy or technology. In this case, the decline in demand for mining machinery led to the layoff of the employees, and their inability to find jobs in the same field indicates structural unemployment. Frictional unemployment occurs when individuals are between jobs, and seasonally unemployment occurs due to seasonal fluctuations in demand for labor. Cyclical unemployment occurs due to economic downturns, and it does not necessarily refer to a long-term decline in demand for a specific industry or occupation.

In 2013,Caterpillar Laid Off Employees Who Produced Mining Machinery at Its