Certified Supply Chain Professional (CSCP) Practice Exam

In what scenario does structural unemployment commonly arise?

1. During holidays

2. When companies downsize

3. Due to changes in technology

4. During economic recovery

The correct answer is: Due to changes in technology

Structural unemployment commonly arises due to changes in technology because advancements can render certain jobs obsolete while creating demand for new skills that the existing workforce may not possess. For example, the introduction of automation and artificial intelligence can lead to a decrease in demand for manual labor jobs while increasing the need for workers skilled in tech-related fields. This type of unemployment is characterized by a mismatch between the skills of the workforce and the requirements of job openings, often necessitating retraining or reskilling programs for affected workers. It is a long-term issue that doesn't resolve quickly, as it may take time for workers to adapt to the new job market demands. The other scenarios do not typically lead to structural unemployment on the same scale. For instance, during holidays, there may be short-term seasonal employment changes, while downsizing can lead to layoffs but doesn't inherently change the skills required across the industry. Similarly, during economic recovery, there may be boosts in employment opportunities, but this does not directly relate to the structural changes in job types or industries caused by technology.