In this scenario, the customer service representative losing their job due to automation represents structural unemployment, different from frictional and cyclical unemployment.
When a customer service representative loses their job due to the adoption of new software that automates most of their tasks, it is an example of structural unemployment. Structural unemployment occurs due to a mismatch between the skills of the workforce and the requirements of employers, often caused by technological advancements or changes in the economy.
Frictional unemployment is another type that occurs when individuals are temporarily between jobs, actively seeking new ones. Cyclical unemployment is tied to the fluctuations in the business cycle, where demand for labor rises and falls with economic conditions.
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