Martha is structurally unemployed. This type of unemployment occurs when there is a long-term change in the economy that affects the demand for certain skills, often due to technological advancement. In this case, the introduction of a machine that can perform her job more efficiently has displaced her from her position.
Martha works in a toothpaste factory, screwing lids on tube of toothpaste. The company replaces Martha with a machine that works twice as fast. Martha is now
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Cyclically unemployed
Frictionally unemployed
Seasonally unemployed
Structurally unemployed
1 answer
1 answer