AS Economics and Business Structural change Unit 2b. Mrs Hilton for revisionstation. Lesson Objectives. To be able to identify all 3 sectors To be able to identify structural change in the sectors in UK business over time To be able to discuss structural unemployment
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Mrs Hilton for revisionstation
Technological change –obsolescence of a type of industry will mean there are whole groups of workers who no longer have the right skills for the market place.
Typesetters at work creating a newspaper by hand – modern machinery means this is a lost skill
Technological change and mechanisation in the primary sector has meant fewer workers are needed
Farm fruit pickers, many workers now replaced by one machine – productive efficiency but at a cost of employment
• – (C) Shipbuilding
Structural unemployment is caused by structural change within an economy cause by the decline of traditional industries (1 mark) or technological change. (1 mark).
• Structural unemployment exists where there is a mismatch between their skills and the requirements of the new job opportunities. (1 mark) e.g. their skills are not needed in other industries
• Shipbuilding has declined over recent years and is a traditional industry in the UK (1 mark).
• Structural unemployment tend to be long term due to the need for retraining (1 mark)
• Many ships are now made abroad due to cheaper labour (1 mark).
• Food retailing, hairdressing and catering are more likely to be associated with demand deficiency (cyclical) unemployment rather than structural unemployment because they are linked to a drop in Aggregate Demand (1 mark).
Some understanding of what is meant by structural change e.g. Structural change involves permanent or semi-permanent changes in the composition of an economy as areas grow or dwindle (1 mark)
Some industries in China will decline and others will flourish and grow (1 mark) e.g. growth in toy manufacturing
The transition is likely to involve greater uncertainty (1 mark)
There may be uncertainty due to the changing nature of industries (1 mark) as employees fear job losses in the future (1 mark)
Structural change is closely linked to changes in the patterns of demand (1 mark) and China will have changes to the patterns of demand within the economy.