Question

As a result of decreased production, David lost his job designing cars. Which terms can be used to describe David? Check all that apply.

cyclically unemployed
domestically unemployed
frictionally unemployed
structurally unemployed
still employed
unemployed

Answer 1

The correct answers are cyclically unemployed and unemployed.

Unemployment, in the labor market, refers to the situation of the citizen who lacks of employment and, therefore, of salary. By extension, it is the part of the population in age, conditions and willingness to work - an active population - that lacks a job.

Cyclical unemployment, on the other hand, occurs cyclically - generally coinciding with economic cycles - and its consequences can lead countries with weak institutions to violence and finally civil disobedience. In developed countries, the situation can provoke changes from state policies to the definitive adoption of a different economic system as a punishment for institutional weakening. A case of cyclical unemployment has been the world crisis of 1929.