Which of the following people is structurally unemployed?
A)Brendan left his job as a short-order cook in New Jersey to become a short-order cook in Madrid, New Mexico. He was unemployed for six weeks during the transition.
B)Mildred quit her job after giving birth to a child.
C)Clem, a skilled corset maker, lost his job when his factory shut down due to a permanent reduction in the demand for corsets.
D)Danielle lost her job when the electronics assembly plant was shut down temporarily due to low product sales in a slumping economy.
E)John reduces his work hours as a furnace repairman in order to pursue a college education.

Question

Quizplus · Accepted Answer

Clem lost his job due to a permanent reduction in demand. This type of unemployment is called structural unemployment, which occurs when an individual's skills are no longer in demand or the industry they work in is declining. The other options are examples of different types of unemployment. Option A is an example of frictional unemployment, which is temporary unemployment due to individuals searching for better job opportunities. Option B is an example of voluntary unemployment, where an individual chooses not to work. Option D is an example of cyclical unemployment, which occurs during a downturn in the business cycle. Option E is an example of underemployment, which occurs when an individual works below their desired level of hours or skill level.

Which of the Following People Is Structurally Unemployed