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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
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.
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?
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