Juanita earned a B.A.Sc.in engineering and went to work for a defence contractor.When the government cut spending, Juanita and 99 others were laid off.The only other business in the town is a grape-growing firm, but the firm refuses to hire laid-off engineers, knowing they will leave at the first opportunity.What type of unemployment is Juanita experiencing?

Question

Quizplus · Accepted Answer

Juanita is experiencing structural unemployment, which occurs due to a mismatch between the skills and qualifications of workers and the available job opportunities. In this case, the grape-growing firm refuses to hire laid-off engineers, creating a structural barrier to their re-employment. Cyclical unemployment arises from fluctuations in the business cycle, seasonal unemployment is due to seasonal variations in demand, and frictional unemployment is the temporary unemployment that arises when workers switch jobs or enter the workforce for the first time. None of these types of unemployment fit Juanita's situation.

Juanita Earned a B