Fred has lost his factory job, replaced by welding robots, and soon plans to go to technical school to learn computer repair because he cannot find a similar job to the one he lost. The type of unemployment facing Fred is:
A)frictional.
B)structural.
C)cyclical.
D)natural.

Question

Fred has lost his factory job, replaced by welding robots, and soon plans to go to technical school to learn computer repair because he cannot find a similar job to the one he lost. The type of unemployment facing Fred is:
A)​frictional.
B)​structural.
C)​cyclical.
D)​natural.

Quizplus · Accepted Answer

Structural unemployment refers to a mismatch between the skills that workers possess and those required by employers. In Fred's case, his job loss is a result of technological advancements that have replaced his job with welding robots. This type of unemployment is structural because his skill set is no longer in demand, and he needs to acquire new skills to find employment.

Fred Has Lost His Factory Job, Replaced by Welding Robots