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

A recent recession has reduced the number of visitors to a local theme park. The park has had to lay off many of its employees, including Simone.

Structural

Frictional

Cyclical

Maria is a physician who has decided to relocate to California to be closer to her family. She is currently interviewing with several prestigious hospitals in the San Francisco Bay Area.

Structural

Frictional

Cyclical

Kevin 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.

Structural

Frictional

Cyclical

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

Unemployment TypeRate(Percent)Frictional3.2Cyclical0.0Structural1.0Total unemployment4.2

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

True

False