Structural unemployment
A) is also known as frictional unemployment.
B) is the main component of cyclical unemployment.
C) is said to occur when people are waiting to be called back to previous jobs.
D) may involve a locational mismatch between unemployed workers and job openings.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills and qualifications of job seekers and the available job openings. This can occur due to changes in technology, changes in consumer preferences, or a mismatch in location. Unlike frictional unemployment (A), which occurs when workers are in between jobs, structural unemployment is not voluntary. It is also distinct from cyclical unemployment (B), which is caused by fluctuations in the business cycle. While some workers who are temporarily laid off may be waiting to be called back to previous jobs (C), this is not the defining characteristic of structural unemployment.

Structural Unemployment