Harold used to have a job bolting fenders to automobiles in a Ford assembly plant. Last year, Ford bought robots to do this job, and as a result, Harold was laid off. If all the other auto companies are also now using robots to bolt fenders onto automobiles, Harold is experiencing what type of unemployment?

Question

Quizplus · Accepted Answer

Harold is experiencing structural unemployment, which occurs when there is a mismatch between the skills workers have and the skills needed for available jobs, often due to technological changes, such as the introduction of robots in this case.

Harold Used to Have a Job Bolting Fenders to Automobiles