What occurs when workers are replaced by machines or computer systems?

Study for the VirtualSC Economics Honors Exam. Utilize flashcards and multiple-choice questions, each with hints and explanations. Get prepared for your exam!

When workers are replaced by machines or computer systems, it leads to structural unemployment. This type of unemployment arises from changes in the economy that result in a mismatch between the skills workers possess and the skills that are needed for available jobs. As technology advances and automation increases, certain job roles may become obsolete, requiring workers to adapt or retrain for new positions that involve different skills.

Structural unemployment is often more persistent than other types of unemployment because it reflects underlying shifts in the economy, such as technological advancements that change the demand for labor in certain sectors. In contrast, cyclical unemployment is related to the overall economic cycle, seasonal unemployment is tied to seasonal work patterns, and frictional unemployment occurs when individuals are temporarily out of work while transitioning between jobs.

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