Which statement correctly describes "structural unemployment? "
A) Structural unemployment occurs mainly during recessions.
B) Structural unemployment is also called "frictional unemployment."
C) Structural unemployment occurs even when the economy is at the natural unemployment rate.
D) The amount of structural unemployment depends on normal labor turnover.

Question

Quizplus · Accepted Answer

Structural unemployment is caused by a mismatch between the skills and qualifications of workers and the requirements of available job opportunities. This type of unemployment can persist even when the economy is at full employment or the natural unemployment rate, highlighting the underlying structural issues in the labor market. The amount of structural unemployment is not simply a result of normal labor turnover, which refers to workers leaving jobs and being replaced by new workers with similar skills and qualifications.

Which Statement Correctly Describes "Structural Unemployment?