QUESTION 45 (6 marks)
A cinema worker loses their job as local spending falls during a broad recession. A separate worker cannot find a job after firms adopt technology requiring different qualifications. Identify the unemployment type in each case and recommend a different policy mechanism for each.
Practice marking scheme
Answer
Cyclical unemployment: demand support; structural unemployment: retraining or mobility support.
Working
The cinema job loss reflects weak aggregate demand, so a suitable demand-management response can increase spending and derived labour demand if capacity is available. The skills mismatch is structural and may persist even as demand recovers. Training tied to vacancies or relocation support can improve matching. Simply boosting general demand may not remove the skills gap.
Marking criteria
- Correctly classifies both cases. [2 marks]
- Explains a demand response for the cyclical case. [2 marks]
- Explains a suitable supply-side response to the mismatch. [2 marks]
Practice question aligned to the current QCAA syllabus; review the worked solution and marking criteria.
View the QCAA syllabusCompare your working with the guide above.