Question

The descriptions give the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment. 1. Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month. 2. George works in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in several months when national economic conditions improve. 3. Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the federal government cut defense spending. She has been looking for similar work for a year, but no company seems interested in her aircraft design skills. 4. Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year but was unsuccessful and quit looking for work. Refer to the above information. Which individual is structurally unemployed

Answer 1

Based on the information described above, the structurally unemployed individual is "Jeanette."

This is because structural unemployment is a form of unemployment whereby an individual is experiencing a non-correlation between his skills and the skills required of workers by employing industries.

In Jeanette's case, she has the skills of aircraft design engineering. However, no company is interested in her aircraft design skills. This shows structural unemployment.

Some of the causes of structural unemployment include the following:

• Foreign competition in labor;
• Outsourcing of production aboard;
• Robots replacing humans;
• Labor immobility;
• Reduction in manufacturing industries, etc.

Hence, in this case, it is concluded that Jeanette is the structurally unemployed one.

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