Unemployment

Question 1

Structural unemployment example

Answer 1

Manufacturing output grew in many of the years between 1993 and 2008, but manufacturing employment fell.

Question 2

US car manufacturing firm (General Motors)

Answer 2

US car manufacturing firm (General Motors) closed down in Detroit due to strong international competition. Car workers become unemployed but were not qualified to gain jobs in areas of labour vacancies. Ghost Towns. The decline in the Detroit US car industry and subsequent structural unemployment led to a decline in the population from 2 million to 900,000.

Question 3

Cyclical unemployment example

Answer 3

• unemployment rose by about 5% in the covid pandemic, great depression.
  
  • unemployment rose in 1982 (12%) due to the recession of 1981. Unemployment fell in the mid 1980s after a peak and unemployment fell again in 1991 by 10% after starting a boom

Counter: However this was not the case in 2008, despite the case where there was a recession, employment rates peaked at 8.5% since 2011.