Carol is a coal miner who just got laid off when the last coal mine in the area was shut down. She has looked everywhere for another job as a miner, but cannot find one. Given that Carol is unlikely to find another job as a miner, she would be considered:

Question

Quizplus · Accepted Answer

Carol's unemployment is due to structural changes in the economy, specifically the decline of the coal mining industry in the area. This type of unemployment is known as structural unemployment, which occurs when there is a mismatch between the skills of workers and the needs of the economy. Frictional unemployment refers to the temporary unemployment that occurs when workers are searching for new jobs. Real-wage unemployment occurs when the labor market is unable to adjust to changes in real wage rates. Carol being a discouraged worker means that she has given up looking for work, but it does not specifically describe the type of unemployment she is facing.

Carol Is a Coal Miner Who Just Got Laid Off