A worker who loses a job at a call center because the company moved the call center operations to another country is an example of
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) disguised unemployment.

Question

Quizplus · Accepted Answer

This is an example of structural unemployment. Structural unemployment occurs when shifts occur in the demand for labor or changes in the structure of the economy make some skills obsolete, resulting in some workers being unemployed. In this case, the worker's skills in call center operations are no longer in demand because the company has moved its operations to another country.

A Worker Who Loses a Job at a Call Center