Question

If new computers are being installed by a company in its office, some employees are thrown out of job due to lack of computer knowledge, then what kind of unemployment this would be called?

Options

• Involuntary unemployment

• Disguised unemployment

• Structural unemployment

• Seasonal unemployment

Answer 1

Structural unemployment

Explanation:

The unemployment caused when new computers are installed and employees lack computer knowledge is called structural unemployment. This happens due to a mismatch between workers’ skills and job requirements caused by technological changes. Structural unemployment arises when advancements in technology make some skills obsolete, forcing workers to be displaced because they cannot work with the updated technology.