When the economy switches production toward services and away from manufacturing and workers in the manufacturing industry are permanently laid off

Question

Quizplus · Accepted Answer

When the economy shifts from manufacturing to services, causing permanent job losses in the manufacturing sector, this is a classic example of structural unemployment. Structural unemployment occurs when there is a long-term decline in demand for a particular type of job due to changes in the economy, such as technological advances or shifts in consumer preferences.

When the Economy Switches Production Toward Services and Away from Manufacturing