What is the primary cause of structural unemployment?a)Economic downtu...
Technological advancements are the primary cause of structural unemployment.
Technological advancements refer to the development and implementation of new technologies that improve productivity and efficiency in various sectors of the economy. While technological advancements have led to numerous benefits and advancements in society, they have also resulted in significant changes in the labor market.
The impact of technological advancements on the labor market can be seen in the following ways:
1. Automation and Job Redundancy:
- With the introduction of new technologies, many manual and repetitive tasks can now be automated.
- This automation leads to a decrease in the demand for certain types of jobs, as machines can perform these tasks more efficiently and cost-effectively.
- As a result, workers who were previously employed in these positions may become structurally unemployed.
2. Skills Mismatch:
- Technological advancements often require workers to possess specific skills and knowledge to operate and maintain the new technologies.
- Workers who lack these skills may find it difficult to secure employment in industries that require technological expertise.
- This skills mismatch between the available workforce and the requirements of the job market can contribute to structural unemployment.
3. Industry Disruption:
- Technological advancements can disrupt entire industries by rendering certain jobs or industries obsolete.
- For example, the rise of e-commerce has led to a decline in the demand for traditional brick-and-mortar retail jobs.
- Workers in these industries may face challenges in finding new employment opportunities, leading to structural unemployment.
4. Job Polarization:
- Technological advancements often lead to the polarization of jobs into high-skilled and low-skilled categories.
- Jobs that require high levels of education and skill become more in demand, while low-skilled jobs may become scarce.
- This polarization can result in a mismatch between workers' skills and the available job opportunities, leading to structural unemployment.
In conclusion, technological advancements play a significant role in causing structural unemployment. While these advancements bring numerous benefits to society, they also disrupt the labor market by automating jobs, creating a skills mismatch, disrupting industries, and polarizing job opportunities. It is important for individuals, businesses, and governments to adapt to these changes through upskilling and retraining programs to mitigate the negative impacts of technological advancements on employment.
What is the primary cause of structural unemployment?a)Economic downtu...
Structural unemployment is primarily caused by technological advancements or changes in the economy that lead to a mismatch between the skills possessed by workers and the skills demanded by the available jobs. This often results in job losses in specific industries that become obsolete due to automation or other technological changes.