This is an example of a frictional unemployment created by sectoral shifts as tobacco companies lay off workers, while chewing gum manufacturers employ more workers.
Sectoral shifts occur as a result of technological changes and changes in the demand for goods, which cause changes in how much labor different industries require. The time spent switching jobs causes frictional unemployment. Frictional unemployment is caused by voluntary job shifts within an economy. Despite a growing, stable economy, frictional unemployment occurs. Workers who decide to quit their jobs in search of new ones, as well as those who enter the labor force for the first time, constitute frictional unemployment.
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