In the case of Tariq textile, what type of unemployment is occurring due to the dismissal of employees because of a poor cotton crop?

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The situation described in the case of Tariq textile refers to structural unemployment, which occurs when there is a mismatch between the skills that workers possess and the skills that are in demand in the labor market. In this case, the dismissal of employees is a direct consequence of a poor cotton crop, affecting the overall production capabilities of the textile business.

When specific industries face challenges—such as a downturn in the primary resource they depend on—workers may lose their jobs not because of their lack of skill or motivation, but due to changes in economic structure or demand for products. This form of unemployment typically results in a significant shift in the labor market, where employees may need to acquire new skills or move to different sectors where employment opportunities are available.

Thus, in this context, the poor cotton crop has led to a fundamental change in the conditions of employment within the textile sector, leading to structural unemployment among those affected workers.

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