Cutbacks in auto sales due to increased imports from Japan is an example of
A)cyclical unemployment.
B)frictional unemployment.
C)seasonal unemployment.
D)structural unemployment.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when changes in the economy result in a mismatch between the skills and location of workers and the available jobs. In this case, the increased imports from Japan have caused a long-term shift in the auto market, resulting in a decrease in demand for workers in certain areas of the industry. This is an example of structural unemployment because the cause of the job loss is not temporary or cyclical, but instead a lasting change in the market.

Cutbacks in Auto Sales Due to Increased Imports from Japan