Structural unemployment is unemployment caused by
A)Insufficient spending in the economy.
B)A mismatch between the skills of job seekers and the requirements of available jobs.
C)Individuals who have the skills employers need and who live in the same location as employers but who are changing jobs.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of job seekers and the requirements of available jobs. This can happen due to technological changes, changes in consumer preferences, or shifts in the structure of the economy. It is different from cyclical unemployment, which is caused by fluctuations in the business cycle, and frictional unemployment, which is caused by individuals changing jobs or entering the workforce for the first time. Insufficient spending in the economy does not directly cause structural unemployment.

Structural Unemployment Is Unemployment Caused by