ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -For example, employees who produce a specialty clothing product that suddenly is no longer a trend might lose their position producing this specific product, causing structural unemployment.

Detailed explanation-2: -Structural unemployment is a form of involuntary unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the skills gap).

Detailed explanation-3: -What are the main types of unemployment? There are three main types of unemployment – cyclical, structural and frictional unemployment. In practice, these cannot be measured directly, and they can often overlap, but they provide a useful way of thinking about unemployment.

Detailed explanation-4: -Structural unemployment is when workers experience unemployment for a long period of time as a result of structural changes in an economy and its labor force. Structural unemployment can be caused by massive changes within an industry, such as the manufacturing industry moving jobs overseas.