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Consider a broom factory that permanently closes because of foreign competition. If the broom factory’s workers cannot find new jobs because their skills are no longer marketable, then they are classified as:Group of answer choicesstructurally unemployed.seasonally unemployed.cyclically unemployed.frictionally unemployed.

Question

Consider a broom factory that permanently closes because of foreign competition. If the broom factory’s workers cannot find new jobs because their skills are no longer marketable, then they are classified as:Group of answer choicesstructurally unemployed.seasonally unemployed.cyclically unemployed.frictionally unemployed.

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Solution

The workers from the broom factory who cannot find new jobs because their skills are no longer marketable would be classified as structurally unemployed.

Structural unemployment occurs when there is a long-term shift in the economy that eliminates jobs for certain types of workers. In this case, the foreign competition that led to the closure of the broom factory represents a structural change in the economy. The workers' skills, which are specific to broom manufacturing, are no longer in demand, making it difficult for them to find new jobs. This is a characteristic of structural unemployment.

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