Which one of the following individuals would be classified as structurally unemployed?
A)Joe was laid off by by his construction company because there was a reduction in the number of houses built in the winter.
B)Gail lost her job with the state because there was a reduction in the state budget.
C)Tommy lost his job when the steel mill where he worked was closed because domestic producers would not produce as efficiently and cheaply as foreign firms.
D)Fay lost her job in early January when the Christmas store where she worked was closed.

Question

Quizplus · Accepted Answer

Tommy lost his job due to a change in the structure of the economy, as the domestic steel industry was unable to compete with foreign firms. This is an example of structural unemployment, which occurs when there is a mismatch between the skills of workers and the needs of employers, or when there are structural changes in the economy. The other choices are examples of frictional (A, D) or cyclical (B) unemployment.

Which One of the Following Individuals Would Be Classified as Structurally