7. For each of the following scenarios, state whether the unemployment is frictional, structural or cyclical. Justify your answer. LO 5.5 MEDIUM a)Ted lost his job when the steel factory closed down. He lacks the skills to work in another industry and so has been unemployed for over a year. b)Alice was laid off from her job at the car plant because the recession reduced the demand for cars. She expects to get her job back when the economy picks up. c)Lance is an unskilled worker who works for local moving companies during their busy seasons. The rest of the year he is unemployed. d)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.

e)Tao looked for a job for six weeks after finishing university. He turned down a couple of offers because they did not let him use the skills he had acquired at university, but now he has a job in the area he studied. f) Karen, a software engineer, lost her job when the start-up company she was working for went bankrupt. She was interviewed at five companies before accepting a new job in another firm in the same industry.