Question

Jones lost his job in industry A, but he has skills that can be transferred to industry B (which is currently hiring). Smith lost a job in industry C, but his skills cannot be transferred to industry B or to any other industry. Jones is __________ unemployed and Smith is __________ unemployed.

Answer 1

frictionally; structurally

Step-by-step explanation:

Frictional unemployment arises when employees are changing when one job to another in the same economy. Workers who leave a job in search of a better paying job or another job are said to be frictionally unemployed. Frictional unemployment also occurs when skilled graduates are seeking work for the first time. Jones is frictionally unemployed because his skill will enable him another job in that industry. He can be compared to some who have quit his job search for another.

Structural unemployment is unemployment as a result of changes in technology or the relocation of industries. The skills possessed by workers become irrelevant, making them unemployable. Jones is structurally unemployed because no sector in the economy needs his skills.