If there is a prolonged recession and technological advances change the skill sets of some jobs and eliminate others,what type of unemployment gets larger?
A)Frictional.
B)Structural.
C)Seasonal.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the available job opportunities. In a prolonged recession, technological advances can change the skill requirements for jobs and eliminate others, making it difficult for workers whose skills have become obsolete to find new employment. This leads to an increase in structural unemployment. Frictional unemployment is caused by temporary transitions between jobs and is not necessarily affected by technological advances or recession. Seasonal unemployment occurs due to predictable seasonal changes in demand for certain jobs, such as agricultural or tourism jobs, and is not related to recession or technological change. Therefore, B is the best choice.

If There Is a Prolonged Recession and Technological Advances Change