Question

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.

Answer 1

Answer:

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.