Question

Which of the following is an example of structural unemployment? A. Dora lost her job when the textile mill closed. She does not have skills to work in another industry and has been unemployed for over a year. B. Marsha was laid off from her job with the airline because the recession has reduced the demand for airline travel. She expects to get her job back when the economy picks up. C. Alan, a software engineer, lost his job when the internet startup he worked for went bankrupt. He interviewed with five companies in the area before taking a job with another firm in the industry. D. Jim had a job as an engineer, but quit when his wife was transferred to another state. He looked for a month before finding a new job that he liked.

Answer 1

Answer:

The correct answer is option A.

Explanation:

Structural unemployment is the type of unemployment that arises because of mismatch in skills that the workers possess and the skills that the employers want.  

In the given example, Dora is unemployed because she does not have the skills required to work in industries other than a textile mill. This is an example of structural unemployment.  

Marsha's case is an example of cyclical unemployment as it caused due to recession.  

Alan and Jim's cases are examples of frictional unemployment. Both of them remained unemployed for a short time when moving from one job to another.