Differentiate technological or structural unemployment from cyclical or cyclical unemployment?
Key Takeaways
Structural unemployment is a type of unemployment that can last for many years and can be caused by changes in technology or shifting demographics. Cyclical unemployment is caused by economic downturns or is related to changes in business conditions that affect the demand for workers.
ANSWER:
- ↪Conjunctural unemployment is caused by an economic crisis or some period when the economy is in recession.
- At this time, production demand is not so high and jobs need to be temporarily reduced, until the economy returns.
- Meanwhile, technological unemployment is caused by the replacement of human labor by machine labor.
- This is because they can produce a greater amount of goods in less time, in addition to bringing lower costs. Therefore, there is a need for greater specialization of workers to handle the new machines.
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