Examples of structural unemployment
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You can't think of any examples?
electricians
welders
HVAC techs
etc.
Structural unemployment is a type of unemployment that occurs due to permanent changes in the economy, such as advances in technology, changes in consumer demand, or shifts in the structure of industries. These changes can lead to certain jobs or industries becoming obsolete, resulting in a mismatch between the skills of available workers and the requirements of available jobs. Here are a few examples of structural unemployment:
1. Technological advances: As technology progresses, certain jobs can become automated or replaced by machinery. For instance, the introduction of self-checkout machines in supermarkets has reduced the need for traditional cashiers, leading to unemployment in this sector.
2. Globalization: The globalization of markets has allowed companies to outsource or move their production to countries with lower labor costs. This can result in job losses in specific industries, such as manufacturing, as companies relocate their operations to other countries.
3. Industry changes: Changes in consumer preferences or industry trends can render certain jobs or industries obsolete. For instance, the decline of physical bookstores due to the rise of e-commerce has led to job losses for employees in the retail book industry.
4. Demographic shifts: Changes in population demographics can also contribute to structural unemployment. For example, an aging population may lead to a decrease in demand for certain industries, such as childcare or entry-level positions typically filled by younger workers.
5. Skills mismatch: Changes in the required skills for certain jobs can result in unemployment if workers' skills no longer align with the demands of the labor market. This can occur when new technologies or industries emerge, and workers are not adequately trained or able to transition into these new fields.
To identify specific examples of structural unemployment, you can look for industries or occupations that have experienced significant declines in employment over time, often associated with the factors mentioned above. Economic reports, labor market analyses, and government data sources can provide insights into trends and changes in employment patterns that indicate structural unemployment.