9 . Types of unemployment

The three people described in the following table are categorized as unemployed by the Bureau of Labor Statistics.

Identify each person in the table as structurally, frictionally, or cyclically unemployed.

Unemployment Type	Structural	Frictional	Cyclical
Clancy recently lost his job as a waiter at a local restaurant. A recent increase in the minimum wage keeps local employers from adding more of the low-skill positions for which he qualifies, so he has been unable to find work. He continues to look for a job, but he's considering going back to school for vocational training.
Eileen just graduated from college and is looking for a full-time position with an investment banking firm.
Kate is a real estate agent. House sales in her area have declined because the region has been going through a recession. She has no clients and is currently looking for a new full-time job.

The following table presents data on frictional, cyclical, structural, and total unemployment for an economy.

Unemployment Type	Rate
(Percent)
Frictional	3.7
Cyclical	0.0
Structural	0.9
Total unemployment	4.6

True or False: This economy is not currently at its natural rate of unemployment.

True

False