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

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills that workers in the labor market offer and the skills demanded by employers. This can happen due to technological changes, shifts in consumer demand, or, as in option D, when imports displace jobs in certain industries, and the affected workers do not have the skills necessary for the new jobs that are available. Options A, B, and C describe cyclical and frictional unemployment, not structural.

The Nation's Structural Unemployment Will Increase When