Question

Determine whether this person or group is unemployed and what type of unemployment it is.

Many jobs are shifted from the United States to Mexico because labor is available at lower wages in Mexico.

This is an example of ________________ unemployment.

Answer 1

This person or group is unemployed due to structural unemployment, which occurs when there is a mismatch between the skills that people have and the skills that are in demand in the job market.

Step-by-step explanation:

This person or group is unemployed due to the type of unemployment called structural unemployment.

Structural unemployment occurs when there is a mismatch between the skills that people have and the skills that are in demand in the job market. In this case, jobs are shifted from the United States to Mexico because labor is available at lower wages in Mexico. As a result, factory workers in the U.S. are laid off as the plants shut down and move to Mexico, creating unemployment.

This type of unemployment is considered structural because it is caused by a change in the types of jobs people are seeking versus the types of companies that are hiring.