ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the skills of part of the workforce do not match those required by industry
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the government changes the structure of the workforce
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Either A or B
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None of the above
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Detailed explanation-1: -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-2: -Structural unemployment is a category of unemployment caused by differences between the skills possessed by the unemployed population and the jobs available in the market. Structural unemployment is a long-lasting condition that is caused by fundamental changes in the economy.
Detailed explanation-3: -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-4: -Causes of Frictional Unemployment If there is a mismatch between job-seekers and available jobs in the market, that is considered frictional unemployment. The issue can especially affect the new entrants or re-entrants to the job market.
Detailed explanation-5: -Structural Unemployment: This unemployment arises when there is a mismatch between the worker’s skills and availability of jobs in the market.