A person who is made redundant because of the contraction of an industry is a victim of ?
Correct answer: D. structural unemployment
- A. frictional unemployment
- B. demand-deficient unemployment
- C. classical unemployment
- D. structural unemployment
Explanation
Contraction of an industry permanently reduces demand for some types of labour, leaving affected workers’ skills mismatched with available jobs. This is structural unemployment, not temporary job-search or economy-wide demand-deficient unemployment.
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