Question

Structural unemployment is caused by: ____

(A) a general downturn in the economy.
(B) people quitting a job just long enough to look for and find another one.
(C) people over 65 who don't really want to work.
(D) people losing a job when their skills become obsolete due to technological innovations.

Answer 1

Answer: Option (D) is correct.

Step-by-step explanation:

Correct option: people losing a job when their skills become obsolete due to technological innovations.

Structural unemployment is a part of involuntary unemployment in which people want to work but unable to find a work. In structural unemployment, their is a mismatch between the skills of the workers and the skill that employers demanded.

If there is an improvement in the technology innovations then this will result in a structural unemployment because the worker's skills are the same but there will new technology.

Hence, they are unable to cope up with the advanced technology, as a result they are loosing their jobs.