Name and describe the type of unemployment to which outsourcing most contributes, and give an example of how this occurs.

Structural unemployment is a form of unemployment that usually occurs as a result of structural changes in the economy, such as changes in the mode of operation in a certain industry, government policy or ownership structure, and increase outsourcing of jobs to developing countries.

For example, when the outsourcing of manufacturing of goods to developing nations becomes widespread, the semi or unskilled laborers that are expected to be employed through this industry are left unemployed.

gauravsingh23VT gauravsingh23VT · Answer 2 · 2022-04-09T12:02:05+02:00

Structural unemployment is the type of unemployment to which outsourcing most contributes.

What is Structural unemployment?

The term "structural unemployment" refers to a mismatch between accessible occupations and unemployed workers' skill levels.

It is created by reasons other than the business cycle, unlike cyclical unemployment. When an underlying economic shift makes it harder for some people to find work, this happens.

Example - The sale of paper tickets at ticket booths was phased out in favor of self-paying devices in a large railway system. With the exception of a few ticket dealers who were trained to assist consumers with machine operation, this resulted in structural unemployment for the bulk of ticket sellers.

Thus, Structural unemployment which outsourcing most contributes.

Learn more about structural unemployment here:

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