After a car accident, Santo needed six months to recover. Since his recovery, he has spent the last year trying to find work in his former occupation, medical technology. So far, he has failed, even though the economy is booming. Which of the four kinds of unemployment best describes Santo’s situation? Explain.
In Santos situation we are talking about frictional unemployment. Santos obviously has qualifications to work in his field, but due to his injury and the fact that he hasn’t worked in that time, it is causing him a problem to find a new job.