Charles is a skilled worker in a textile factory creating designer coats. The company has decided to use robots to create these coats. As a result, Charles becomes unemployed because he does not have the skills needed to operate the new robotic system. This is an example of which type of unemployment?

Structural unemployment occurs when changes in technology or the economy make a worker’s existing skills no longer match the jobs available. Robots replace Charles’s work, and he lacks the skills to operate the new system. Therefore, this is structural unemployment, choice B.

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