Question

Over the past few decades, the U.S. economy has switched from a primarily manufacturing economy to a service economy. Many individuals working in manufacturing positions lost their jobs, and many new jobs opened up in services. For those who lost jobs in manufacturing, this is an example of:

Answer 1

Structural unemployment

Step-by-step explanation:

Structural unemployment is one that occurs as a result of a mismatch between the skills that employees have and the skills required by employers.

It is a form of involuntary unemployment.

Usually when there is industrial restructuring this type of unemployment occurs. For example if there is a shift from manual factory production to automated production systems, people are going to lose their jobs because their skills are no longer in demand.

On the given scenario the U.S. economy has switched from a primarily manufacturing economy to a service economy. So more of service professionals were now needed.