Question

12. Car manufactures in Detroit have invested in new technology and machines that has resulted

in many employees to lose their jobs because they aren't needed anymore. What kind of
unemployment is this?
a. Frictional
b. Seasonal
c. Structural
d. Cyclical

Answer 1

The answer is structural unemployment.

—Evidence—

Structural unemployment is most obvious in industries undergoing technological advancements. For example, in the farming industry, much of the work is becoming mechanized, which means that fewer farmers are needed and many are let go. When these farmers go to cities to find work, they may find no other similar jobs in which to apply their skills.