NPR ("Certain Green Industries Have Job Openings", November 12, 2008) reported on a story about wind turbine manufacturers in Ohio having trouble finding skilled workers. The report noted that as a result tens of thousands of people having been laid off, there is "a huge pool of job- seekers. " The firms claim to"offer good pay and benefits." A representative from the United Steelworkers clai their union members have easily transferrable skills, but the pay is too low, around $30,000 annually manager at Apollo Alliance says that workers in the new industry need different skills than those in steel industry.
The type of unemployment described in the story is unemployment.
A) structural
B) cyclical
C) efficiency wage
D) frictional

Question

Quizplus · Accepted Answer

Structural unemployment is caused by a mismatch between the skills and qualifications of workers and the requirements of available jobs. In the case of the wind turbine manufacturers in Ohio, they are having trouble finding skilled workers with the necessary skills for the new industry, despite the high number of job-seekers from the steel industry who have been laid off. This suggests a structural unemployment issue.