Jamal works in a factory in Lake Zurich, Illinois, assembling toy trains. The factory owner updates the current equipment and in
stalls 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.
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.
