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Question : The concept of "structural unemployment" refers to:

Option 1: Unemployment caused by changes in the business cycle

Option 2: Unemployment caused by the lack of job opportunities in rural areas

Option 3: Unemployment caused by the introduction of labor-saving technologies

Option 4: Unemployment caused by the migration of workers to urban areas


Team Careers360 7th Jan, 2024
Answer (1)
Team Careers360 16th Jan, 2024

Correct Answer: Unemployment caused by the introduction of labor-saving technologies


Solution : The correct answer is (c) Unemployment caused by the introduction of labor-saving technologies.

Structural unemployment refers to unemployment that occurs due to a mismatch between the skills and qualifications of workers and the requirements of available jobs. It is caused by changes in the structure of the economy, such as technological advancements, changes in consumer demand, or shifts in the composition of industries. When new technologies are introduced that automate or replace certain jobs, workers may become unemployed if their skills are no longer in demand. Structural unemployment requires workers to acquire new skills or transition to different industries to find employment.

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