Legislation passed guaranteeing everyone a minimum wage rate. What type of unemployment is this?
3 answers
This type of unemployment is called structural unemployment. Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the requirements of available jobs. In this case, the minimum wage legislation may lead to structural unemployment if businesses are unable to afford to pay all employees the minimum wage, leading to job losses for workers with lower skills or qualifications.
What type of unemployment does each of these situations describe?
a. The introduction of robot in the manufacturing.
b. The economy moves into recession.
c. Legislation passed guaranteeing everyone a minimum wage rate.
d. The government freezes recruitment of public servants in an attempt to save money.
e.More working people are forced to take annual leave.
a. The introduction of robot in the manufacturing.
b. The economy moves into recession.
c. Legislation passed guaranteeing everyone a minimum wage rate.
d. The government freezes recruitment of public servants in an attempt to save money.
e.More working people are forced to take annual leave.
a. The introduction of robots in manufacturing would lead to technological unemployment, which is a type of structural unemployment where workers lose their jobs due to advancements in technology that make their skills obsolete.
b. The economy moving into a recession would lead to cyclical unemployment, which occurs when there is a downturn in the business cycle and demand for goods and services decreases, leading to layoffs and job losses.
c. Legislation passed guaranteeing everyone a minimum wage rate could lead to structural unemployment if businesses are unable to afford to pay all employees the minimum wage, resulting in job losses for workers with lower skills or qualifications.
d. The government freezing recruitment of public servants in an attempt to save money could lead to frictional unemployment, as individuals who were previously seeking public sector jobs are temporarily unable to find employment in that sector.
e. More working people being forced to take annual leave could lead to seasonal unemployment if it occurs at the same time each year due to factors such as weather, holidays, or other seasonal changes in demand for goods and services.
b. The economy moving into a recession would lead to cyclical unemployment, which occurs when there is a downturn in the business cycle and demand for goods and services decreases, leading to layoffs and job losses.
c. Legislation passed guaranteeing everyone a minimum wage rate could lead to structural unemployment if businesses are unable to afford to pay all employees the minimum wage, resulting in job losses for workers with lower skills or qualifications.
d. The government freezing recruitment of public servants in an attempt to save money could lead to frictional unemployment, as individuals who were previously seeking public sector jobs are temporarily unable to find employment in that sector.
e. More working people being forced to take annual leave could lead to seasonal unemployment if it occurs at the same time each year due to factors such as weather, holidays, or other seasonal changes in demand for goods and services.