Which condition causes structural unemployment?
A) Wages are kept above the equilibrium level.
B) People choose not to work at the equilibrium wage.
C) Some wages are below the equilibrium level.
D) Conditions for unemployment insurance benefits relax.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the needs of employers. This can happen when wages are kept above the equilibrium level, which makes it difficult for businesses to afford to hire workers. As a result, some workers may be unable to find jobs despite actively seeking employment.

Which Condition Causes Structural Unemployment