A good example of an outcome that could lead to "hysteresis" in the labour market is

Question

Quizplus · Accepted Answer

Hysteresis refers to the idea that temporary shocks can lead to persistent changes in the economy. In the labor market, hysteresis can occur when new entrants to the labor market have difficulty finding jobs, which then leads to a higher rate of unemployment throughout their working lives. This is because the longer someone is unemployed, the less attractive they become to employers, resulting in a "scarring" effect that can persist even when the economy improves. Therefore, choice B best fits this definition of hysteresis in the labor market.

A Good Example of an Outcome That Could Lead to "Hysteresis