Unemployment that results from a mismatch between worker qualifications and the characteristics employers require is called _____ unemployment.

Question

Quizplus · Accepted Answer

Structural unemployment occurs due to a mismatch between the skills and qualifications possessed by workers and the requirements of employers. It is caused by changes in the structure of the economy, such as technological advancements or shifts in demand, and can be long-term in nature. Cyclical unemployment, on the other hand, is caused by fluctuations in economic activity, while frictional unemployment results from workers searching for new jobs or entering the labor force. Natural unemployment refers to the level of unemployment that occurs even when the economy is at its full potential output.

Unemployment That Results from a Mismatch Between Worker Qualifications and the Characteristics