Question

Suppose that the Bureau of Labor Statistics predicts that the number of jobs for dental hygienists will grow faster than most occupations while the number of jobs for bookbinders will decline. This change in the labor market could lead to:_________. a) structural unemployment created by sectoral shifts. b) structural unemployment created by efficiency wages. c) frictional unemployment created by efficiency wages.d) frictional unemployment created by sectoral shifts.

Answer 1

Answer:

The correct answer is A

Explanation:

Sectoral shifts is defined as the structural change or variation which lead to the reallocation of labor within the industries which create functional unemployment as the labor moves or shifts from the declining to the growing sectors.

So, in this scenario, the BLS (Bureau of Labor Statistics), predict that the jobs for the dental hygienists will grow where as the jobs for bookbinders will decrease. Therefore, this will result in a structural unemployment which is created due to sectoral shift.