type of unemployment

Review Lesson 7

Directions: Answer each of the questions below.

1. How does an increase in unemployment negatively affect our government?

2. When a business finds it necessary to layoff some employees (due to slowing sales), what positive effects might this have for the business?

3. Mr. Smith was disabled in a car accident in 1995 and has not been able to work since. Is Mr. Smith included in the unemployment statistics? Why or why not?

4. Explain how dishonest workers and discouraged workers affect employment statistics.

5. For the following situations, identify the type of unemployment each represents.

a. Because of the decline in the U.S. birth rate, baby clothes manufacturers are laying off workers.
b. Bill decided to relocate to Texas. He quit his present job and found a new job in Texas three weeks later.
c. As interest rates continue to rise, the sale of new homes decreases. This has caused an increase of unemployed construction workers.
d. As the fall harvest ends, agriculture unemployment increases.
e. Janet worked in the drive-up window of a bank. The bank has installed an automated teller machine and has closed the drive-up window. Janet’s job no longer exists, so she has to start looking for another job.
f. The state of Missouri has enacted a law stating that no one under the age of 21 can work in an establishment that sells liquor. Mark, an 18-year-old, was working as a waiter in a restaurant that sells alcoholic beverages. He can no longer work at the restaurant.

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