Final answer:
Higher unemployment rates are more common among non-White, young, and less-educated individuals. Cyclical unemployment is linked to economic downturns, frictional unemployment to job transitions, and structural unemployment to economic restructuring, with the former being the most undesirable.
Step-by-step explanation:
To understand who commonly faces higher unemployment rates in the U.S. economy, we consider various demographic groups. Historically, unemployment rates are generally higher among non-White individuals compared to White individuals. Additionally, young workers tend to experience higher unemployment rates compared to middle-aged workers. When it comes to educational attainment, high school graduates usually face higher unemployment rates than college graduates.
Moving on to the types of unemployment:
- Cyclical unemployment occurs due to economic downturns or recessions, such as when landscapers are laid off during a housing construction drop.
- Frictional unemployment happens when individuals are transitioning between jobs, such as a financial analyst moving from Chicago to Arizona.
- Structural unemployment is the result of industrial reorganization, where jobs are lost due to changes in the economy, such as factory workers laid off due to plant relocations to Mexico and Ireland, or printers laid off because of a switch to digital advertising.
Cyclical unemployment is undesirable as it's tied to economic distress. Frictional unemployment is somewhat neutral or even positive, as it often indicates workers seeking better opportunities. Structural unemployment is often seen as undesirable, as it indicates a more permanent loss of jobs due to shifts in the economy.
Overall, understanding these distinctions helps recognize how economic shifts and policies impact various groups in the workforce, and which populations are most vulnerable to joblessness.