Question

Ross's company closed because of tough foreign competition in its product sales. No other companies are left in this product category and Ross cannot find a similar job position. What type of unemployment is he experiencing?a. frictional b. structural c. cyclical d. seasonal

Answer 1

Answer:

B. Structural

Explanation:

This is the type of unemployment resulting from changes in the pattern of demand for goods and services or changes in technology. These changes may in turn alter the structure of the total demand for labour rendering some particular skill less in demand or may become obsolete. This is the case of Ross as he's unable to find similar job due to less demand for the type of labour he's offering. Toss is suffering from Structural form of unemployment. The demand for other skill however may expand. Unemployment in this case is the result of the composition of the labour force which does not respond quickly to new structures of job opportunities.