Question

Nick left his job as a plumber when his wife took a position in another region. The quantity of plumbing services demanded is considerably lower in the new region, in part because of high union-negotiated wages. He would like to work at the high union wage but remains unemployed due to a lack of plumbing jobs.What type of unemployment would this be?

A. structural
B. frictional
C. cyclical

Answer 1

Answer:Cyclical unemployment (c)

Explanation:

Cyclical unemployment occurs when the overall demand for goods and services in an economy cannot support full employment. In this case, the demand for plumbing services in the region is low, Nick who desire to offer plumbing services won't be able to because of the demand.