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Here are four individuals telling you their stories of how they became unemployed. In a multi-paragraph essay, apply the theories of unemployment to explain the type of unemployment that each of these individuals is facing and explain which of these individuals qualifies for unemployment benefits: Two months ago, Marcelle used to work full time in an automobile manufacturing firm. "The factory where I used to work has closed because our market contracted so much, and so I was laid off. This is happening to people all over the country—all you see in the papers is that economic growth has fallen and incomes across the country have fallen. I have been looking very hard for a new job, but have had no luck yet." Until last week, Dominic used to work full time as a hair-dresser in downtown Cincinnati. "I decided to quit my job, because I want to move to New York City." Until last month, Francine worked part time at a ski resort. "Well, it is summer now, and so the resort is closed. I will apply again in the winter when the snow is back. I am not interested in working until then." Two months ago, Beauvoir had been working full time as a secretary. "I was a good typist, but I don't know how to use a computer. My boss wanted to upgrade the office to computers, and so I was replaced by someone who is computer-savvy. I have been looking for another job, but it appears that I need to learn some computer skills." Develop a response that includes examples and evidence to support your ideas, and which clearly communicates the required message to your audience. Organize your response in a clear and logical manner as appropriate for the genre of writing. Use well-structured sentences, audience-appropriate language, and correct conventions of standard American English.

Paper For Above Instructions

Introduction

Understanding the categories of unemployment clarifies why different workers lose jobs and whether they qualify for unemployment insurance. Economists commonly distinguish cyclical, frictional, structural, and seasonal unemployment: cyclical unemployment rises in recessions (output falls) (Mankiw, 2019), frictional unemployment reflects short-term transitions as workers search or relocate (Blanchard & Johnson, 2012), structural unemployment results from skill mismatches or technological change (Autor, 2015; Acemoglu & Restrepo, 2019), and seasonal unemployment follows predictable calendar patterns (ILO, 2019). This essay applies those frameworks to four vignettes and analyzes likely eligibility for unemployment benefits under typical rules requiring involuntary job loss, availability to work, and active job search (U.S. Department of Labor, 2021).

Marcelle: Cyclical Unemployment

Marcelle worked in automobile manufacturing but was laid off when her factory closed due to a nationwide contraction in demand. Her description—"economic growth has fallen and incomes across the country have fallen"—matches the textbook definition of cyclical unemployment, where job losses rise because aggregate demand and GDP have declined (Mankiw, 2019; OECD, 2020). Cyclical unemployment tends to be widespread, affecting many firms and sectors simultaneously.

Eligibility: Because Marcelle was laid off (an involuntary separation) and reports actively searching for work, she generally meets the criteria for unemployment insurance in most jurisdictions: involuntary job loss, ability and availability to work, and active job search (U.S. Department of Labor, 2021). During cyclical downturns, public benefits often cover displaced workers while macro policy and labor-market programs aim to restore demand (BLS, 2020).

Dominic: Frictional Unemployment (with benefit caveat)

Dominic quit his job as a hairdresser because he plans to move to New York City. His unemployment stems from a voluntary transition and relocation intention; this aligns with frictional unemployment, which captures short spells while workers search for better-fitting jobs or move between areas (Blanchard & Johnson, 2012). Frictional spells are a normal part of a dynamic labor market and often short-lived.

Eligibility: Voluntary quits generally disqualify claimants from unemployment benefits unless the quit is for good cause (e.g., unsafe working conditions, domestic violence, or employer rule violations) as defined by state rules (DOL, 2021). Because Dominic voluntarily resigned to move, he will likely be ineligible for UI benefits in most U.S. states unless he can demonstrate a qualifying reason for the quit or he becomes available and registered in the new state and meets local rules. Thus, while Dominic’s unemployment type is frictional, his benefit eligibility is uncertain and likely denied under typical rules (U.S. Department of Labor, 2021).

Francine: Seasonal Unemployment

Francine worked part time at a ski resort that closes for the summer. Seasonal unemployment occurs when industries slow or shut down predictably with the calendar—tourism, agriculture, and some construction activities are common examples (ILO, 2019). Francine’s job loss is not due to cyclical downturn or skill mismatch but to the expected seasonality of her employer’s business.

Eligibility: Eligibility for UI for seasonal workers varies. Some seasonal workers can claim benefits during off-season layoffs if they are laid off involuntarily, available for work, and actively seeking employment (BLS, 2020). However, Francine explicitly says she is "not interested in working until then," which suggests she is not available or actively searching. That self-imposed withdrawal from the labor market typically disqualifies someone from receiving unemployment benefits until they re-enter active job search and meet availability requirements. If Francine were actively seeking alternative summer work or registered with the unemployment office, she might qualify; as stated, she likely does not qualify at present (U.S. Department of Labor, 2021).

Beauvoir: Structural Unemployment

Beauvoir was a typist replaced after her office upgraded to computers; she lacks the computer skills required for the new job. This is a classic case of structural unemployment: a change in the structure of demand for labor (technology adoption) has made her existing skills less valuable (Autor, 2015; Acemoglu & Restrepo, 2019). Structural unemployment can persist until workers retrain, relocate, or new job opportunities arise in growing sectors.

Eligibility: Because Beauvoir was replaced (involuntary separation), she generally qualifies for unemployment benefits while she seeks new work, provided she meets rules about availability and active search. Many unemployment systems also link displaced workers to training and reemployment services (OECD, 2020; ILO, 2019). Programs that subsidize training or offer re-employment services can shorten structural spells by improving workers’ skills and matches (Kletzer, 1998).

Policy and Practical Implications

Distinguishing unemployment types matters for policy design. Cyclical unemployment responds best to macroeconomic stimulus and short-term benefits (Mankiw, 2019). Frictional unemployment is minimized through information platforms, job matching, and geographic mobility supports (Blanchard & Johnson, 2012). Structural unemployment requires active labor-market policies like retraining, credential recognition, and targeted hiring subsidies (Autor, 2015; OECD, 2020). Seasonal unemployment can be smoothed by unemployment insurance rules that accommodate predictable off-season layoffs and by promoting off-season employment or cross-training.

Conclusion

Applying economic theory to the four cases: Marcelle faces cyclical unemployment and likely qualifies for UI; Dominic faces frictional unemployment but likely does not qualify because he voluntarily quit to relocate; Francine is seasonally unemployed but, because she is not actively seeking work, probably does not qualify until she is available and searching; Beauvoir faces structural unemployment but likely qualifies for benefits and may benefit from retraining programs. Clear distinctions among unemployment types are essential for determining benefit eligibility and for designing the right policy response to restore employment and earnings (BLS, 2020; DOL, 2021; OECD, 2020).

References

  • Acemoglu, D., & Restrepo, P. (2019). Automation and New Tasks: How Technology Displaces and Reinstates Labor. NBER Working Paper Series.
  • Autor, D. H. (2015). Why Are There Still So Many Jobs? The History and Future of Workplace Automation. Journal of Economic Perspectives, 29(3), 3–30.
  • Blanchard, O., & Johnson, D. R. (2012). Macroeconomics (6th ed.). Pearson.
  • Bureau of Labor Statistics (BLS). (2020). Labor force statistics and definitions: Types of unemployment. U.S. Department of Labor. https://www.bls.gov
  • International Labour Organization (ILO). (2019). ILO Global Employment Trends. https://www.ilo.org
  • Kletzer, L. G. (1998). Job Displacement. Journal of Economic Perspectives, 12(1), 115–136.
  • Mankiw, N. G. (2019). Principles of Economics (8th ed.). Cengage Learning.
  • Organisation for Economic Co-operation and Development (OECD). (2020). Employment Outlook 2020. https://www.oecd.org
  • U.S. Department of Labor. (2021). Unemployment Insurance: Eligibility and Claims. https://www.dol.gov
  • Card, D., & Krueger, A. B. (1994). Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772–793.