If a worker becomes unemployed because of an increase in the minimum wage, that worker is:
A)frictionally unemployed.
B)structurally unemployed.
C)cyclically unemployed.
D)engaged in job search.

Question

Quizplus · Accepted Answer

When an increase in the minimum wage raises the cost of labor for firms, employers may respond by laying off some workers or reducing the hours of some employees, which would result in structural unemployment as workers' skills or abilities may no longer match the requirements of available jobs. The workers who lost their jobs due to this structural shift are considered structurally unemployed, as opposed to those who are frictionally unemployed (between jobs but actively seeking work) or cyclically unemployed (laid off due to weak economic conditions across major sectors of the economy). Therefore, option B is the best choice.

If a Worker Becomes Unemployed Because of an Increase in the Minimum