Question

Suppose the demand for hard-wood flooring increases, while the demand for wall-to-wall carpeting decreases. Based on this change in consumer tastes, the demand for hard-wood-flooring factory workers in North Carolina increases, while the demand for carpet factory workers in Georgia decreases. This is an example of _________.

Answer 1

Frictional unemployment created by sectoral shifts

Step-by-step explanation:

Frictional employment is the shift of labour from one job to another based on individual or structural circumstances.

In this case, there is a structural change that led to a reallocation of labour from carpet factory to hard-wood, which generated frictional unemployment as workers moved from the declining to growing sector.