ECONOMICS
BUSINESS CYCLES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
New immigrants have a hard time finding jobs
|
|
|
Workers are laid off due to a recession
|
|
|
Workers quit their current job to go back to school to get better training
|
|
|
Workers are fired because they do not have the specific skills employers value
|
|
|
Workers enter the labor force because wages are increasing
|
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: -Farmers in emerging market economies are another example of structural unemployment. Free trade allowed global food corporations access to their markets. That put small-scale farmers out of business. They couldn’t compete with the lower prices of global firms.
Detailed explanation-3: -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-4: -3) Structural Unemployment: It is unemployment due to lack of skills demanded by the market place. Example: Warren lost his job as a cashier due to the creation and use of self check out counters (job skills mismatch or replaced by technology).