A general mismatch between the skills of unemployed workers and the skills needed by employers with job openings results in
A) frictional unemployment.
B) structural unemployment.
C) cyclical unemployment.
D) a higher labor force participation rate.

Question

Quizplus · Accepted Answer

This scenario describes structural unemployment, which occurs when there is a mismatch between the skills of available workers and the needs of employers with job openings. Frictional unemployment refers to the temporary unemployment that occurs when workers are between jobs, while cyclical unemployment results from changes in the business cycle, such as a recession. A higher labor force participation rate refers to the percentage of the population that is working or actively seeking employment, and is not directly related to this scenario.

A General Mismatch Between the Skills of Unemployed Workers and the Skills