Problem
The U.S. Department of Labor reported that Michigan's unemployment rate in June 2009 rose to 15.2%, becoming the first state in 25 years to suffer an unemployment rate exceeding 15%. Michigan has been battered by the collapse of the auto industry and the housing crisis and has had the highest unemployment rate in the nation for the past 12 months.
Source: CNNMoney, July 17, 2009
1. Why is the reality of the unemployment problem in Michigan actually worse than the unemployment rate statistic of 15.2 percent?
2. Is this higher unemployment rate in Michigan frictional, structural, or cyclical? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.