Question

After 15 years with Ford Motor Corporation, one summer Cameron loses his job. His boss explained that his position has been downsized after the technological advances in automobile production. Ford no longer requires the skill that Cameron had.Cameron is best considered A) not in the labor force. C) frictionally unemployed. B) structurally unemployed. D) cyclically unemployed.

Answer 1

Answer:

B) structurally unemployed.

Explanation:

Structurally unemployed: It is a kind of unemployment that occur due to mismatch between skill required for job available and skill possessed by the individual or unemployed population. This is caused by technological advancement or higher competition in the market. It has long-lasting effect on economy and required fundamental changes to overcome the structural unemployment.

Actions required to overcome structurally unemployed:

• Education and training.
• Relocation of subsidies.

In the given case, Cameron has lost his job due to technological advancement in automobile production, which is a case of structural unemployment.