A hotel manager in Montreux notices that during winter off-season, 15% of hospitality workers are temporarily laid off. This type of unemployment is called:

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The question describes a situation where unemployment arises specifically during the winter off-season for hospitality workers, with a fixed share (15%) affected during that period.
Option a: Cyclical unemployment. This occurs due to fluctuations in the overall business cycle (recessions or booms) affecting job availability across the economy. The scenario given is seasonal, not tied to the broader business cycle, so this is not a perfect fit.
Option b: Seasonal unemployment. This type of unemployment happens when workers are employed only during certain seasons or times of the year (as in tourism, agriculture, or holidays) and are laid off during slow seasons. Since the layoff is linked to winter off-season, this matches the classic definition.
Option c: Frictional unemployment. This reflects short-term unemployment as people transition between jobs (e.g., moving to a new job, entering the labor market, or taking time to find a better fit). The described layoff is not about voluntary job search or transition; it is a predictable seasonal pattern, so frictional unemployment is not appropriate.
Option d: Structural unemployment. This arises when there is a mismatch between workers’ skills and the demands of the labor market (often lasting longer-term due to changes in technology or industry). The winter layoff is not caused by a skill mismatch; it’s a seasonal fluctuation, so this option doesn’t fit.
In summary, the scenario aligns with a seasonal, recurring pattern tied to the time of year rather than broader economic cycles, individual transitions, or long-term structural shifts. The key distinction is seasonal timing versus the other types which are driven by cycles, transitions, or shifts in the economy.

EC301 Principles of Macroeconomics

A hotel manager in Montreux notices that during winter off-season, 15% of hospitality workers are temporarily laid off. This type of unemployment is called:

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