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Question
robert just found out that he is going to be unemployed within a month because his factory has invested in a robotic factory line and his skills are no longer needed. this means that robert is dropdown. the gdp within country d has begun to decline. as a result of decreased production, thomas lost his job designing cars. this means that thomas is dropdown. raquel has just been offered a job, but she has decided not to take it because she feels her skills merit better pay and a better position. this means that raquel is dropdown.
- For Robert: His unemployment is due to technological change (robotics) making his skills obsolete, so he is structurally unemployed.
- For Thomas: The GDP decline and decreased production led to his job loss, which is cyclical unemployment (related to economic downturn).
- For Raquel: She chose not to take a job as she seeks better pay/position, so she is frictionally unemployed (voluntarily between jobs or seeking better opportunities).
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Robert: structurally unemployed
Thomas: cyclically unemployed
Raquel: frictionally unemployed