Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA BT

Types of unemployment.

MMohamed8y ago
This question was taken from BPP text page 168 and also from a fundamental pilot paper. Martin is an experienced and fully trained shipbuilder, based in a western European city. Due to significant economic change in supply and demand conditions for shipbuilding in Martin’s own country, the shipyard he worked for has closed and he was made redundant. There was no other local demand for his skills within his own region and he would have to move to another country to obtain a similar employment, and could only find similar work locally through undertaking at least a year’s retraining in a related engineering field. Which of the following describes the type of unemployment that Martin has been affected by? A Structural unemployment B Cyclical unemployment C Frictional unemployment D Marginal unemployment -------------------------------------------------------------------------------------------- The question on this topic is confusing me, sir, just to know whether the answer is either 'A' or 'B'. The question's answer is different in both references. please help solve this question
kengarrettkengarrettTutor8y ago#1
It is certainly structural. The fundamentals of the ship-building industry have changed leaving Martin with no further employment opportunities in his area of skill. Cyclical implies that the industry will start to grow again - perhaps after a decade or so and there is no hint that will happen.
MMohamed8y ago#2
Thank you sir, I got another doubt on the same question. How about the option 'c' frictional unemployment? How does this option apply to the question? Is structural unemployment or frictional unemployment, most likely to be answered to this question?
kengarrettkengarrettTutor8y ago#3
I've told you the answer is A. See page 113 of our notes.
This topic is locked — no new replies.