The nationʹs structural unemployment will increase when
A) there is an increase in post-Christmas layoffs of workers.
B) there is influx into the labor market of new college graduates.
C) an increase in textile imports displaces older textile workers who do not have the skills necessary to find new jobs.
D) bad economic policies send the economy into a recession.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when workers do not have the necessary skills or abilities to find new jobs in a changing market. In this scenario, the increase in textile imports is displacing older textile workers who lack the skills required for new jobs, leading to an increase in structural unemployment. Options A and D refer to cyclical unemployment, which is caused by fluctuations in the business cycle. Option B may lead to temporary frictional unemployment as new graduates search for jobs, but it is not directly related to structural unemployment.

The Nationʹs Structural Unemployment Will Increase When