The unemployment that occurs due to changes in the technology or in th

The unemployment that occurs due to changes in the technology or in the demand for particular products is called

frictional unemployment

structural unemployment

cyclical unemployment

disguised unemployment

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This question was previously asked in

UPSC CDS-1 – 2023

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Unemployment that arises due to changes in the structure of the economy, such as technological advancements or shifts in industry demand, is called structural unemployment.

Structural unemployment occurs when there is a mismatch between the skills workers possess and the skills required by the jobs available in the market.

Frictional unemployment is short-term unemployment that occurs when people are transitioning between jobs. Cyclical unemployment is tied to economic downturns (recessions). Disguised unemployment is a situation where more people are employed than are necessary to perform the job efficiently.

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