America’s Labor Market

Answer the following questions to check your understanding of the story.

Are new graduates who struggle to convince employers to take a chance on them unemployed?

a) No, they are not members of the labor market.

b) Yes, they are frictionally unemployed.

c) Yes, they are cyclically unemployed.

d) Yes, they are structurally unemployed.

Are job hoppers who go from one job immediately to another job unemployed?

a) Yes, they are cyclically unemployed if they take a cut in salary.

b) Yes, they are structurally unemployed if they must acquire new skills.

c) No, they are not unemployed.

d) Yes, they are frictionally unemployed if they must do on-the-job training.

Why has the wage growth rate slowed for job hoppers?

a) Employers want to hire job hoppers at a slower pace than job hoppers want new jobs.

b) Employers want to hire job hoppers at a faster pace than job hoppers want new jobs.

c) Wage growth rate must be slowing for all workers.

d) Employers find it tough to hire a job hopper at the current wage rate.

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