Question

In 2017, Boeing announced that it was laying off 1,800 employees in addition to the 7,000 workers it had cut the year before. The laid-off employees who were not able to find jobs at another aircraft manufacturer due to a permanent decline in employee demand in the aircraft industry would be considered

a) structurally unemployed.
b) frictionally unemployed.
c) seasonally unemployed.
d) cyclically unemployed.

Answer 1

Answer:

A. Structurally Unemployed

Explanation:

Structural unemployment is unemployment resulting from changes in the pattern of demand for goods and services or changes in technology like in this case. These changes may in turn alter the structure of the total demand for labour rendering some particular skill less in demand or may become obsolete. The demand for other skill however may expand. Unemployment in this case is the result of the composition of the labour force which does not respond quickly to new structures of job opportunities. In this case, there's a decline for workers demand in aircraft industry, as a result, the laid of workers skills are not matched with the probable current jobs available.