A bit confused with Pilot Papres Nov & Dec 2011 / Type of Unemployment

[vitkim2002]

Hi

I'm bit confused with the question about Types of Unemployment. Pilot Paper Nov 2011 (question 12) and Pilot Paper Dec 2011 (question 6) have the same question, but the answer is different.

Q:
Martin is an experienced and fully trained shipbuilder, based in a western European city. Due to significant economic
change in supply and demand conditions for shipbuilding in Martin’s own country, the shipyard he worked for has
closed and he was made redundant. There was no other local demand for his skills within his own region and he
would have to move to another country to obtain a similar employment, and could only find similar work locally
through undertaking at least a year’s retraining in a related engineering field.

Which of the following describes the type of unemployment that Martin has been affected by?

The Nov PP answers that it is Frictional Unemployment while the Dec PP says that it is Structural Uneployment. Both of them have explanation.. Following the logic I can suggest the third one - Cyclical Unemployment (ref to task condition: Due to significant economic
change in supply and demand conditions for shipbuilding in Martin’s own country, the shipyard he worked for has
closed and he was made redundant)

I understand that this question is related to ACCA guys, but interesting to know the opinions.

Thanks

[achu_eks]

Well I believe it is structural unemployment

[vitkim2002]

Thanks achu_eks.

I agree with you.

VK