Which of the following people illustrates a case of structural unemployment?

• A. A recent college graduate searching for her first job.
• B. A retail employee who was laid off during a recession.
• C. A teacher who is temporarily out of work during summer vacation.
• D. A factory worker who lost his job because his skills are no longer needed due to automation.

Answer: (D)

Verified step by step guidance

1. Step 1: Understand the definition of structural unemployment. Structural unemployment occurs when there is a mismatch between the skills workers have and the skills needed for available jobs, often due to technological changes or shifts in the economy.
2. Step 2: Analyze each option to see if the unemployment is caused by a skills mismatch or other factors. For example, a recent college graduate searching for a first job is typically considered frictional unemployment, as they are transitioning between education and work.
3. Step 3: Recognize that a retail employee laid off during a recession is an example of cyclical unemployment, which is related to economic downturns rather than structural changes.
4. Step 4: Note that a teacher temporarily out of work during summer vacation is an example of seasonal unemployment, which is due to predictable changes in labor demand over the year.
5. Step 5: Identify that a factory worker losing a job because their skills are no longer needed due to automation perfectly fits the definition of structural unemployment, as the worker's skills have become obsolete due to technological progress.