Identify and explain the type of unemployment (if any) faced by each of the following people:
Jalen, Who lost his job as part of a nationwide wave of layoffs during an economic downturn.
Grace, who lost her job because robotics were developed that do her job faster and more accurately
Mike, who submitted a letter of resignation a month ago and is now looking for a job that will allow him to better use what he studied in college
Teri, who left the labor force when she retired at age 65 to enjoy the good life in sunny Arizona
1. Jalen: Jalen is experiencing cyclical unemployment. This type of unemployment occurs during an economic downturn when there is a decrease in aggregate demand leading to layoffs and job loss across various industries. The nationwide wave of layoffs indicates a systemic issue affecting the overall economy.
2. Grace: Grace is facing technological unemployment, also known as structural unemployment. This type of unemployment occurs when technology or automation replaces human labor. In Grace's case, the introduction of robotics made her job redundant as they perform tasks faster and more accurately.
3. Mike: Mike is going through frictional unemployment. Frictional unemployment happens when individuals voluntarily leave their jobs or are between jobs as they search for new opportunities that better align with their skills and qualifications. Mike's decision to resign and actively seek a job that better utilizes his college education exemplifies frictional unemployment.
4. Teri: Teri is not experiencing any form of unemployment. Upon retirement, individuals who voluntarily leave the labor force are not considered unemployed. Unemployment refers to a situation where individuals are actively seeking employment but unable to find work. Teri made a voluntary choice to retire and enjoy her retirement in Arizona, so she is not part of the labor force anymore.