After a tourist season ends, Yvonne’s employer closes for months. She is unemployed until the next tourist peak. This is:

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Question restatement: After a tourist season ends, Yvonne’s employer closes for months. She is unemployed until the next tourist peak. This is:

Option a: cyclical unemployment. This occurs due to the overall ups and downs of the business cycle, such as recessions or booms, leading to insufficient demand for labor across the economy. In this scenario, the unemployment is tied specifically to seasonal patterns, not to the broader business cycle, so this option is not a perfect fit.

Option b: seasonal unemployment. Here, unemployment arises because the demand for labor is periodic and predictable within a given season. The tourist industry experiences busy and slow periods, so workers are temporarily laid off after the season ends and recalled when the season resumes. This aligns exactly with the described situation.

Option c: structural unemployment. This type results from a long-term mismatch between workers’ skills and job requirements, or a disappearing industry, often due to technological change or shifts in the economy. The described case is temporary and tied to the calendar, not a lasting skill mismatch, so this is incorrect.

Option d: frictional unemployment. This reflects short-term unemployment as workers transition between jobs, search for better opportunities, or enter the labor force. While it involves temporary joblessness, the example specifies a recurring seasonal pattern rather than a voluntary search process, making this less appropriate.

Summary: The situation is best described as seasonal unemployment because the layoff and recall are driven by seasonal demand in the tourist industry, occurring regularly each year rather than due to broader economic cycles, lasting structural shifts, or job-search frictions.

MUF0062 Economics Unit 2 - Semester 2, 2025

After a tourist season ends, Yvonne’s employer closes for months. She is unemployed until the next tourist peak. This is:

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