Chapter 8 - Assignment 3: Problems in Measuring Unemployment

1. This article suggests that there has been an increase in the number of long-term unemployed in the period leading up to 1995. Since the economy appeared to be in an expansionary stage of the business cycle during this period, what type of unemployment (frictional, cyclical, or structural) is most likely to account for the increase in long-term unemployment in this case?
2. Is the article correct in arguing that the existence of discouraged workers and "contingent workers" causes the official unemployment statistics to understate the actual amount of unemployment and underemployment in the U.S.?
3. The author(s) indicate that much of the unemployment among male workers is due to the fact that these workers do not possess the training and skills needed for these jobs. Is this type of unemployment frictional, cyclical, or structural? Explain.
4. The author(s) of this article suggest that, at the time at which they were writing, there was much room for growth in the U.S. economy. Does this imply that they believe that the actual unemployment rate was above or below the natural rate of unemployment? Explain.