The first individual Marcelle is facing cyclical unemployment. Cyclical unemployment is
basically a cycle when the economy cannot work under full employment. This can be due
to recessions or slow economic growth. Just like Marcelle, her company was failing
because of market contraction. Thus the factory had to lay out all their workers because
they could not afford to pay for their wages. Marcelle should qualify for unemployment
benefits because she had no control on what happened to the market. She is still trying to
find a job but has no luck.
The second individual Dominic is facing frictional unemployment. Frictional
unemployment is the time period where people are constantly switching jobs. This is
because people face difficulties in finding the right job for them. One example is college
students who do not know what they want to do in the future. Dominic didn’t get fired, he
simply left. Dominic should not have any right to unemployment benefits because he had
an option to get money. Dominic is different than the first individual who lost her job
without any control.
The third individual Francine is facing cyclical and frictional unemployment. Since the ski
resort that she works at is closed she is currently unemployed. This is because they have no
demand during the Summer time. She faces frictional unemployment because she has a