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
Beth just moved with her husband to Portland,
Oregon. She's looking for a job as a paralegal.
Andrew 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.
Eleanor is a real estate agent. House sales in her
area have declined because the region has been
going through a recession. She has no clients and
is currently looking for a new full-time job.
The following table shows data on frictional, cyclical, structural, and total unemployment for an economy.
Unemployment Type Rate
(Percent)
Frictional 1.0
Cyclical 0.0
Structural 3.1
Total unemployment 4.1
True or False: This economy is not currently at full employment.
A. True
B. False