Due to a recession, ABC Enterprises’ sales decline. In order to reduce losses, ABC lays off 10 percent of its labor force, including Don, Ellen, and Frank. ABC indicates that it will hire all its workers back within two months. In each of the following cases, explain if the person is employed, unemployed, or not in the labor force.
(a) Don decides he is going to use the two months to go fishing in Montana.
(b) Ellen questions whether ABC will really hire her back. She quickly finds another job.
(c) Frank’s wife decides she wants to go back to work, but urges him to go back to school. He agrees and resigns his position at ABC. He also decides to devote all of his efforts to school. His wife starts looking for a job to support them.