Manufacturing jobs have migrated overseas due to increased productivity and low wages of workers in other countries. What type of unemployment does this cause in Canada?

Question

Quizplus · Accepted Answer

Structural unemployment occurs when the demand for a certain type of job decreases due to changes in the economy or technology, leading to a mismatch between the skills workers have and the skills needed for available jobs. The migration of manufacturing jobs overseas due to low wages and increased productivity in other countries represents a change in the economy that has reduced the demand for certain types of jobs in Canada, leading to a structural unemployment problem.

Manufacturing Jobs Have Migrated Overseas Due to Increased Productivity and Low