Explain how technological changes that have reduced the demand for low-skilled workers can change...
Question:Explain how technological changes that have reduced the demand for low-skilled workers can change the natural rate of unemployment.
Unemployment: It refers to the people who do not have jobs or work to do. Unemployment leads to a low level of efficiency of the economy because more people do not have work to do so that they can earn. More unemployment can result in less growth in the economy.
Answer and Explanation:Technology refers to the innovation that will help the economy grow better because technology and automation are taking humans' jobs. The demand for technology is increasing in the economies due to which the low-skilled workers are not getting jobs as they do not have the knowledge and skills to operate the technology. Technology can change the natural rate of unemployment because it occurs because of economic, social, political, and technological changes in the economy. These changes can bring more unemployment in the economy because there will be less demand for low-skilled workers who do not have enough skills.
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