In 2004, Noah lost his job as a shipbuilder. His shipyard never reopened, and his very specialized skills as a shipbuilder were no longer in demand. Noah's unemployment is best classified as _____
A) cyclical.
B) structural.
C) seasonal.
D) frictional.
E) voluntary.

Question

Quizplus · Accepted Answer

Noah's job loss is due to a permanent shift in the demand for his skills. This is an example of structural unemployment, which occurs when workers' skills or jobs are no longer in demand due to changes in the economy.

In 2004, Noah Lost His Job as a Shipbuilder