Question

Beth has been unemployed for two months from her accounting job. She has interviewed with a number of other firms, but has not received a job offer. Her debt are increasing and at this point she needs to find a job just to cover her expenses at least. She now begins to look for positions in places that pay lower wages that what she would like. What is Beth’s experience called in economic terms?

Answer 1

Answer: Involuntary unemployment

Explanation:

Unemployment is a situation whereby the individuals who are ready and willing to work do not get a job. Involuntary unemployment occurs when workers are willing and ready to work at the wage rate available in the market or below the wage rate but still can't find a job.

This can be seen in Beth's scenario as we are told that she now begins to look for positions in places that pay lower wages than what she would like.