Structural unemployment

Question

Quizplus · Accepted Answer

Structural unemployment is the type of unemployment that results from a mismatch between the skills that workers in an economy have and the skills that employers in the economy require. This type of unemployment often arises as a result of technological changes, such as automation and the outsourcing of jobs to other countries. Option A is incorrect because the time it takes employers to find appropriate employees is a factor that affects frictional unemployment. Option B is incorrect because recessions typically lead to an increase in overall unemployment, including structural unemployment. Option C is also incorrect because economic downturns can exacerbate structural unemployment as companies are forced to cut costs and reorganize their operations.

Structural Unemployment