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20 January, 12:53

Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and installs new robots that can do Jamal's job. As a result, Jamal is laid off and is now unemployed. Jamal would be considered:a. cyclically unemployed. b. overemployed. c. a discouraged worker. d. frictionally unemployed. e. structurally unemployed.

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  1. 20 January, 12:56
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    e. structurally unemployed.

    Explanation:

    Structural unemployment: It refers to a mismatch or discrepancy between the skills of the unemployed person and the jobs available. Structural unemployment occurs when finding a job becomes difficult for people due to the shift in the economy. In this scenario, the process of outsourcing becomes possible.

    Causes:

    1. Occupational immobilities.

    2. Geographical immobilities.

    3. Labour market flexibility.

    Jamal would be considered as structurally unemployed.
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