Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.

Suppose that workers in one industry cannot be quickly retrained for the other. How would these shifts in demand affect equilibrium wages both in the short run and in the long run?

Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing. a. If workers in these two industries require similar amounts of training, and if workers at the beginning of their careers could choose which industry to train for, what would you expect to happen to the wages in these two industries? How long would this process take? Explain. b. Suppose that one day the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft. What would happen to demand for labor in these two industries? c. Suppose that workers in one industry cannot be quickly retrained for the other. How would these shifts in demand affect equilibrium wages both in the short run and in the long run? d. If for some reason wages fail to adjust to the new equilibrium levels, what would occur?

Consider an economy with two labor markets-one for manufacturing workers and one for service workers. Suppose initially that neither is unionized.

How would these changes in the manufacturing labor market affect the supply of labor in the market for service workers? What would happen to the equilibrium wage and employment in this labor market ?

Structural unemployment is sometimes said to result from a mismatch between the job skills that employers want and the job skills that workers have. To explore this idea, consider an economy with two industries: auto manufacturing and aircraft manufacturing.

Suppose that one day the economy opens itself to international trade and, as a result, starts importing autos and exporting aircraft. What would happen to the demand for labor in these two industries?

Consider an economy with two labor markets-one for manufacturing workers and one for service workers. Suppose initially that neither is unionized.

If manufacturing workers formed a union, what would you expect to happen to the wages and employment in manufacturing?

Using a diagram of the labor market, show the effect of an increase in the minimum wage on the wage paid to workers, the number of workers supplied, the number of workers demanded, and the amount of unemployment.

Are the following workers more likely to experience short-term or long-term unemployment? Explain. a. a construction worker laid off because of bad weather b. a manufacturing worker who loses his job at a plant in an isolated area c. a stagecoach-industry worker laid off because of competition from railroads d. a short-order cook who loses his job when a new restaurant opens across the street e. an expert welder with little formal education who loses his job when the company installs automatic welding machinery

Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employmentpopulation ratio (calculated as the percentage of the adult population that is employed). Explain what happens to statistic in the following scenario. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs.

Economists use labor-market data to evaluate how well an economy is using its most valuable resource$-$its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

After an unsuccessful search, some of the laid-off workers quit looking for new jobs.

Economists use labor-market data to evaluate how well an economy is using its most valuable resource-its people. Two closely watched statistics are the unemployment rate and the employmentpopulation ratio (calculated as the percentage of the adult population that is employed). Explain what happens to statistic in the following scenario. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

A stock market boom induces newly enriched 60-year-old workers to take early retirement.

Economists use labor-market data to evaluate how well an economy is using its most valuable resource$-$its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

Numerous students graduate from college and immediately begin new jobs.

Economists use labor-market data to evaluate how well an economy is using its most valuable resource$-$its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

Numerous students graduate from college but cannot find work.

Economists use labor-market data to evaluate how well an economy is using its most valuable resource$-$its people. Two closely watched statistics are the unemployment rate and the employment-population ratio. Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing?

Advances in healthcare prolong the life of many retirees.

Between 2004 and 2007, total U.S. employment increased by 6.8 million workers, but the number of unemployed workers declined by only 1.1 million. How are these numbers consistent with each other? Why might one expect a reduction in the number of people counted as unemployed to be smaller than the increase in the number of people employed?