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Macro Economics Question Unemployment Apamandy

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Macro Economics
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Miami Dade College
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Introduction
What does it mean to be unemployed? According to the Bureau of Labors Statistics (part of the
U.S. Department of Labor), in order to be unemployed there are certain requisites that an
individual must meet:
1. First of all, the individual must be part of the labor force. In order to be part of the labor
force, an individual must have a job or be actively looking for one. Several categories of
individuals are not included in the labor force and therefore, cannot be considered
unemployed: people younger than 16, or over 16 and attending some type of school,
people that are already retired, individuals on active duty service, and individuals who do
not want to work or seek any job.
2. Another characteristic of an unemployed individual is that he/she has not been working
but is willing to work, and has actively searched for a job during the past four weeks.
Actively seeking a job refers to submitting resumes, filing to job applications either
online or personally, searching jobs through friends, family, university boards, or any
other type of effort to get a job. An individual cannot claim to be unemployed if he/she
hasn’t even tried to get a job.
Types of unemployment
There are three different kinds of unemployment. Two of them are considered part of the natural
rate of unemployment: frictional unemployment and structural unemployment. While a third type
of unemployment results from changes in the business cycle (Lumen, 2021).
1. Frictional unemployment: when an individual is unemployed between jobs. This type of
unemployment might be voluntary or not, since a person can quit his/her job in order to

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seek for a better one. For example, a store clerk that quits his job in order to search a new
job as a bank teller.
2. Structural unemployment: when an individual cannot obtain a job because his/her
qualifications are not those required by potential employers. For example, an
administrative assistant that cannot find a job because he lacks computer knowledge.
3. Cyclical unemployment: when an individual cannot obtain a job because of changes in
the aggregate supply of the economy. For example, a worker of a manufacturing
company that is forced to reduce operations due to lower sales as a result of a recession.
Marcelle
The following facts are given about Marcelle:
She used to work for an automobile manufacturer
The factory she used to work in closed due to lower sales as a result of a recession.
She is actively seeking for a new job.
Marcelle fits into the category of cyclical unemployed because she lost her job as a result of her
employer shutting down due to lower sales. Lower sales are a result of a national recession, not
simply one individual business going bankrupt. She is also actively looking for a new job.
Dominic
The following facts are given about Dominic:
She used to work as a hair-dresser in Cincinnati.
She quit her job voluntarily because she wants to move to New York.
Apparently, she plans to work in New York.

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Introduction What does it mean to be unemployed? According to the Bureau of Labors Statistics (part of the U.S. Department of Labor), in order to be unemployed there are certain requisites that an individual must meet: 1. First of all, the individual must be part of the labor force. In order to be part of the labor force, an individual must have a job or be actively looking for one. Several categories of individuals are not included in the labor force and therefore, cannot be considered unemployed: people younger than 16, or over 16 and attending some type of school, people that are already retired, individuals on active duty service, and individuals who do not want to work or seek any job. 2. Another characteristic of an unemployed individual is that he/she has not been working but is willing to work, and has actively searched for a job during the past four weeks. Actively seeking a job refers to submitting resumes, filing to job applications either online or personally, searching jobs through friends, family, university boards, or any other type of effort to get a job. An individual cannot claim to be unemployed if he/she hasn’t even tried to get a job. Types of unemployment There are three different kinds of unemployment. Two of them are considered part of the natural rate of unemployment: frictional unemployment and structural unemployment. While a third type of unemployment results from changes in the business cycle (Lumen, 2021). 1. Frictional unemployment: when an in ...
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