[Related to the Apply the Concept on page 292] The
president of a manufacturing firm that makes precision
tools in California’s Silicon Valley was quoted in an article
in the Wall Street Journal as saying that “production workers . . . are scarce” and that “many applicants lack even
the most rudimentary skills.” He added, “I would say in
this valley, people looking for jobs are unemployed for a
reason.” Are these applicants likely to be cyclically, frictionally, or structurally unemployed, and what would be the
reason that most of them are unemployed? Briefly explain.
Source: Jeffrey Sparshott, “Skilled Workers Are Scarce in Tight Labor
Market,” Wall Street Journal, February 2, 2017.