Structural unemployment results in a ________ of labor which should theoretically be reduced by a(n) ________ in the wage rate.

Question

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Structural unemployment occurs when there is a mismatch between the skills of the unemployed workers and the skills needed for the available jobs. This mismatch results in a surplus of labor because there are more workers seeking jobs than there are jobs available for their skill set. Theoretically, a decrease in the wage rate could make it more financially feasible for employers to hire and train workers, thus reducing the surplus of labor.

Structural Unemployment Results in a ________ of Labor Which Should