Classify the following scenarios as examples of frictional, structural, or cyclical unemployment, and explain your answer.

a. Amanda just finished her computer science degree and wants to live in Halifax. There are lots of openings for people with her skills, but she wants to be sure to find a job that’s a good fit for her. She moves to Halifax without a job and crashes on a friend’s couch while she interviews for jobs.

b. A food-processing factory decides to increase its wages by 50% above what its competitors are paying. It finds that fewer workers quit or call in sick, and that it has lower spoilage rates as a result of its more consistent, productive workforce. Its competitors respond by raising wages as well. The quantity of labour supplied to the industry increases to try to take advantage of the higher wages and is higher than the quantity demanded by employers at the new wage.

c. Li Wei owns a homebuilding company. During a severe downturn in the housing market, he has to fire many of his subcontractors.

d. Which of the three types of unemployment (frictional, structural, or cyclical) will persist even if the wage is at the equilibrium wage? Explain your answer.