Question

Forty-five percent of the labor force in Armenia is involved in the agricultural sector, but the economic growth in the nation comes from industry and tourism. What type of unemployment would such a mismatch of ability and job requirements cause?

1) frictional
2) predictable
3) mechanical
4) structural
5) operational

Answer 1

In Armenia, the mismatch between the skills of the labor force and job requirements would likely lead to structural unemployment, due to the fundamental changes in the economy affecting job demand.

Step-by-step explanation:

The mismatch of ability and job requirements you're describing in Armenia, where 45% of the labor force is involved in the agricultural sector while economic growth stems from industry and tourism, would likely cause what's known as structural unemployment. This type of unemployment occurs when there is a fundamental change in the economy that reduces the demand for certain skills while increasing the demand for others. In this case, workers may not have the necessary skills or qualifications to transition from agriculture to industry or tourism, or there may not be enough jobs available in the growing sectors to accommodate all those who are seeking employment in agriculture.