Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called: a. cyclical unemployment. b. structural unemployment. c. full unemployment. d. frictional unemployment.
Question
Unemployment arising from a persistent mismatch between the skills and characteristics of workers and the requirements of jobs is called:
a. cyclical unemployment.
b. structural unemployment.
c. full unemployment.
d. frictional unemployment.
Solution
The correct answer is:
b. structural unemployment.
Structural unemployment occurs when there is a persistent mismatch between the skills and characteristics of workers and the requirements of jobs. This can happen when technology changes, certain industries decline, or new industries develop that require skills that unemployed workers do not have.
Option a, cyclical unemployment, is incorrect because it refers to unemployment that results from economic downturns. Option c, full unemployment, is not a type of unemployment. Option d, frictional unemployment, is incorrect because it refers to temporary unemployment that occurs when workers are between jobs or are new entrants to the labor force.
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