For twenty years, Jim was a customer service representation at a call center in Minnesota.In order to save money, his firm moved the call center to India and laid off Jim two years ago.Jim has been unable to find a similar job anywhere.Jim's unemployment is best classified as

Question

Quizplus · Accepted Answer

Jim's job loss is not a result of a temporary economic downturn (cyclical) or a seasonal pattern. It is also not due to personal factors such as quitting or being fired (frictional). Instead, it is a result of the company's decision to relocate the call center (structural), which means that Jim would likely need to acquire new skills or education to find comparable employment. Competitive unemployment is not a recognized category, so it is not a valid option.

For Twenty Years, Jim Was a Customer Service Representation at a Call