ECONOMICS (CBSE/UGC NET)

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: -Employees may not be able to perform their respective jobs due to the lack of skills required to complete the specific task.

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: -Structural unemployment is long-lasting unemployment that comes about due to shifts in an economy. This type of unemployment happens because though jobs are available, there’s a mismatch between what companies need and what available workers offer.

Detailed explanation-5: -Cyclical Unemployment During an economic downturn, a shortfall of demand for goods and services results in a lack of jobs being available for those who want to work. Businesses experiencing weaker demand might reduce the amount of people they employ by laying off existing workers, or hiring fewer new workers.