NPR ("Certain Green Industries Have Job Openings", 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 "a huge pool of job-seekers." The firms claim to "offer good pay and benefits." A representative from the United Steelworkers claims 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) cyclical
B) structural
C) frictional
D) efficiency wage

Question

Quizplus · Accepted Answer

The type of unemployment described is structural unemployment, which occurs when there is a mismatch between the skills that workers have and the skills needed for available jobs. In this case, the skills of laid-off workers from the steel industry do not match the skills needed in the wind turbine manufacturing industry.