Oregon’s 5.6 percent unemployment rate is close to the national average of 5.5 percent. A few years ago, Oregon had one of the highest unemployment rates in the nation. To avoid rising unemployment, Oregon Governor Kulongoski’s plan is to provide public schools and universities with enough state funds to meet growing demand for skilled workers. Also, Kulongoski wants to use government money for bridges, roads, and buildings to stimulate more construction jobs.
a. What is the main type of unemployment that Governor Kulongoski is using policies to avoid? Explain.
b. How might these policies impact Oregon’s natural unemployment rate? Explain.