Which statement correctly describes ʺstructural unemployment?ʺ
A) The amount of structural unemployment depends on normal labor turnover.
B) Structural unemployment occurs even when the economy is at the natural unemployment rate.
C) Structural unemployment is also called ʺfrictional unemployment.ʺ
D) Structural unemployment occurs mainly during recessions.

Question

Quizplus · Accepted Answer

Structural unemployment is a type of unemployment caused by shifts in the structure of the economy, such as changes in technology, consumer preferences, or globalization, that leave some workers without the skills or geographic location needed for available jobs. Unlike frictional unemployment, which is caused by normal turnover in the labor market, or cyclical unemployment, which is caused by fluctuations in aggregate demand, structural unemployment occurs even when the economy is at the natural unemployment rate, which includes frictional and structural unemployment. Therefore, option B is the correct statement.

Which Statement Correctly Describes ʺStructural Unemployment?ʺ