Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to:

structural unemployment created by sectoral shifts.

structural unemployment created by efficiency wages.

frictional unemployment created by efficiency wages.

frictional unemployment created by sectoral shifts.

Question

Business

Moshe

4 November, 20:17

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to:

structural unemployment created by sectoral shifts.

structural unemployment created by efficiency wages.

frictional unemployment created by efficiency wages.

frictional unemployment created by sectoral shifts.

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Answers (1)

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Erick Moses · Answer 1

frictional unemployment created by sectoral shifts.

Explanation:

This unemployment is generated because the information between vacancies for the labor force is imperfect. People study and prepare to be dental hygienists or bookbinders without information for the total amount of vacancies that will occur. This frictional unemployment will decrease once the labor force adjust for the demand changes in the jobs. Because the shortage, the salaries for dental hygienists will increase and more people will start studies for dental hygienists. The opposite will occur with the bookbinders job, the decrease in the demand will lower the wages and less people will dive into.