Jan is an engineer working for the roads department in a small town in New South Wales. When the government cut spending, Jan and 99 others were laid off. The only other business in the town is growing grapes to be made into raisins, but the growers refuse to hire laid-off engineers, knowing they will leave at the first opportunity. The unemployment Jan is experiencing is:
A) cyclical.
B) structural.
C) permanent.
D) frictional.

Question

Quizplus · Accepted Answer

Jan's unemployment is structural because it results from a mismatch between her skills and the available job opportunities in the town. The grape growers do not want to hire an engineer because they know the job is not a good fit for Jan's skills and she will likely leave as soon as a better opportunity arises.

Jan Is an Engineer Working for the Roads Department in a Small