Suppose that the number of jobs for engineers expands by 10 percent per year,the number of new engineers by 5 percent per year while the number of automobile mechanics grows by 8 percent and the number of new automobile mechanics jobs grows by 3 percent.We conclude that

Question

Quizplus · Accepted Answer

The growth rates of jobs and new hires for engineers and automobile mechanics are different. This indicates a change in the structure of the labor force, which may lead to structural unemployment. It is important to note that frictional unemployment may increase due to the growth in new hires, but overall, structural unemployment is likely to increase because of the uneven growth rates of jobs and new hires for different professions. Therefore, the best choice is C.

Suppose That the Number of Jobs for Engineers Expands by 10