NPR ʺCertain Green Industries Have Job Openingsʺ, November 12, 2008) reported on a story about wind turbine manufacturers in Ohio having trouble finding skilled workers. The report noted that as a result tens of thousands of people having been laid off, there is ʺa huge pool of job-seekers.ʺ The firms claim toʺoffer good pay and benefits.ʺ A representative from the United
Steelworkers claim that their union members have easily transferrable skills, but the pay is too low, around $30,000 annually. A manager at Apollo Alliance says that workers in the new industry need different skills than those in the old steel industry.
The type of unemployment described in the story is unemployment.
A) structural
B) cyclical
C) frictional
D) efficiency wage

Question

Quizplus · Accepted Answer

The type of unemployment described in the story is structural, as workers who have been laid off from the old steel industry do not necessarily have the skills needed for the new green industry jobs. This indicates a mismatch between the skills of available workers and the demands of available jobs, which is a characteristic of structural unemployment.