Structural unemployment
A) falls during the expansion phase of the business cycle.
B) falls as the pace of technological progress increases.
C) generally lasts longer than frictional unemployment.
D) falls when the government provides more generous unemployment compensation benefits.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills that workers offer and the skills demanded by employers. This type of unemployment is often due to changes in the economy, such as technological advancements or shifts in the market demand for certain products or services. It generally lasts longer than frictional unemployment, which is the short-term unemployment that occurs when people are between jobs or entering the labor force for the first time, because it often requires workers to gain new skills or relocate to find employment that matches their skills.

Structural Unemployment