new technology has made most of the jobs workers do ay a particular factory obsolete and they are laid off. which rype of unemployment are they experiencing?
Structural ••
Casual
Frictional
Cyclical
You're right.
The type of unemployment that the workers at the factory are experiencing is structural unemployment.
Structural unemployment occurs when there is a mismatch between the skills and qualifications of the workers and the available job opportunities in the market. In this case, the introduction of new technology has made the jobs at the factory obsolete. The workers who were laid off may not have the necessary skills or qualifications to adapt to the new technology, and as a result, they are unable to find employment in their current industry.
To determine the type of unemployment, it is important to understand the following definitions:
1. Casual Unemployment: This refers to temporary unemployment when workers are in between jobs or have voluntarily left their previous job without securing a new one. It is not related to external factors like automation or changes in the industry.
2. Frictional Unemployment: This type of unemployment occurs when workers are in between jobs or are searching for their first job. It is a result of normal turnover and time spent looking for suitable employment opportunities.
3. Cyclical Unemployment: This type of unemployment is influenced by the business cycle. It occurs during economic downturns when there is a decrease in demand for goods and services. Companies may lay off workers due to reduced production or falling demand.
In the given scenario, since the workers are being laid off because of the introduction of new technology, their unemployment is a result of the structural changes in the industry, leading to structural unemployment.