Classify the following types of unemployment 1.A mine worker was retrenched because the gold mine he worked for reduced production due to a drop in the gold price 2. A men specializes the grape harvesting and is unemployed due to drought 3.A men lost.his job when his company merged with another company
Answers
In the 1st case, the mine worker is suffering from Cyclical unemployment due to poor economic conditions leading to drop in gold price. In the 2nd case, the man specialised in grape harvesting is suffering from seasonal unemployment due to drought season. In the 3rd case, the man is suffering from structural unemployment after his company merged with a new company.
For the miner who has been retrenched due to reduced production as the gold prices have fallen is known as temporary unemployment as the miner will be called again when the output is increased after the rise of gold price.
If a man loses his employment on a farm due to reduced grape production that is being affected by drought, he will face seasonal unemployment and can be called in the next season of the grapes.
When two companies merge, and a person loses the job, it is known as permanent unemployment as he has been sacked and will never be called back.