One explanation for the increase in the natural rate of unemployment in 2010 was a mismatch between the skills of the American labor force and the skills that the modern job market demanded.

Question

Quizplus · Accepted Answer

This explanation is widely accepted by economists and has been cited in various studies and reports. The job market has been evolving with the rise of technology and globalization, and the skills needed for many jobs have changed. As a result, some workers may not have the skills that are currently in demand, leading to difficulty in finding employment and an increase in the natural rate of unemployment.

One Explanation for the Increase in the Natural Rate of Unemployment