The nation's structural unemployment will increase when
A) there is an increase in post- Christmas layoffs of workers.
B) an increase in textile imports displaces older textile workers who do not have the skills necessary to find new jobs.
C) there is influx into the labor market of new college graduates.
D) bad economic policies send the economy into a recession.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of workers and the jobs that are available. An increase in textile imports can displace older textile workers who do not have the skills necessary to find new jobs, leading to a higher level of structural unemployment. Choices A, C, and D all relate to different forms of short-term or cyclical unemployment.

The Nation's Structural Unemployment Will Increase When