Structural unemployment is best reduced by
A) job training programs to retool workers with new skills.
B) improved job-market information.
C) an increasing unemployment compensation benefits.
D) offering above equilibrium wages to attract workers.

Question

Quizplus · Accepted Answer

Structural unemployment is caused by a mismatch between the skills workers have and the skills employers are looking for. Therefore, job training programs that help workers acquire new skills relevant to the current job market can help reduce structural unemployment. The other options, such as improved job-market information or increased unemployment compensation benefits, may help address other types of unemployment but are not as effective in reducing structural unemployment. Offering above equilibrium wages may temporarily attract workers, but it does not address the underlying issue of skill mismatches.

Structural Unemployment Is Best Reduced by