Let’s assume that a country in the Caribbean reports the following labour statistical data to its citizen in 2011. Labour force: 140,200 Individuals under 16 years: 12,400 Employment: 132,700 Imprisonment: 980 Working age population: 210,900 Armed forces: 18,600 For each of the following scenarios, state whether the unemployment is frictional, structural or cyclical. Justify your answer. (a) Ted lost his job when the steel mill closed down. He lacks the skills to work in another industry and so has been unemployed over a year. (b) Gwen had a job as a clerk but quit when her husband was transferred to another state. She looked for a month before finding a new job that she liked.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations
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Let’s assume that a country in the Caribbean reports the following labour statistical data to its citizen in 2011.

Labour force: 140,200

Individuals under 16 years: 12,400

Employment: 132,700

Imprisonment: 980

Working age population: 210,900

Armed forces: 18,600

For each of the following scenarios, state whether the unemployment is frictional, structural or cyclical. Justify your answer.

(a) Ted lost his job when the steel mill closed down. He lacks the skills to work in another industry and so has been unemployed over a year.

(b) Gwen had a job as a clerk but quit when her husband was transferred to another state. She looked for a month before finding a new job that she liked.

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