Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of

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12-07-2022
Business

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Suppose that consumers decide to walk to work more frequently and drive cars less. Companies that make walking shoes hire workers, while automobile companies lay off workers. This is an example of

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sharmaaashutosh169 sharmaaashutosh169 · Answer 1 · 2022-07-22T12:37:28+02:00

It is an example of frictional unemployment created by sectoral shifts.

Frictional unemployment results from the voluntary changes in employment within a particular economy. Frictional unemployment is a certainty, even in the growing and stable economy. Frictional unemployment is generally used to describe both newly hired workers and those who have decided to leave their existing positions in the pursuit of new ones.

There is always some frictional unemployment in the economy. It is a component of the natural unemployment, the slowest pace of unemployment in an economy is due to economic considerations and the labor mobility, and it has an impact on the employment situation as a whole.

Therefore, the answer is the frictional unemployment that is created by sectoral shifts.

To know more about frictional unemployment click here:

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