In the 2000s, video recordings were made primarily on DVDs. However, in the 2010s streaming movies became increasingly popular, leading to a sharp decline in DVDs. As a result, many people who manufactured DVDs lost their jobs and didn't have the skills necessary to work in jobs required to stream movies. This occurrence is best consider an example of
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) underemployment.

Question

Quizplus · Accepted Answer

This is an example of structural unemployment, which occurs when there is a mismatch between the skills that workers have and the skills needed for available jobs, often due to technological changes or shifts in the economy.

In the 2000s, Video Recordings Were Made Primarily on DVDs