Less expensive labour pools overseas might create layoffs at a Canadian-based engine plant. This is an example of structural unemployment.

Question

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Structural unemployment occurs when changes in the structure of the economy, such as technological advances or globalization, lead to a mismatch between available jobs and the skills of workers. In this case, the less expensive labor pool overseas creates a structural shift in the labor market that may result in layoffs for workers in the Canadian-based engine plant.

Less Expensive Labour Pools Overseas Might Create Layoffs at a Canadian-Based