When does structural unemployment occur?
A)when frictional unemployment exceeds 5 percent of the labour force
B)when a person leaves a job to seek a better position and can't find the job he or she wants
C)when steelworkers are laid off due to a downturn in the economy
D)when automation reduces the need for welders in Oshawa

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of the labor force and the needs of the economy, often due to automation or technological changes that reduce the demand for certain types of jobs. The example of automation reducing the need for welders in Oshawa is a clear example of structural unemployment. Choices A and B describe frictional unemployment, which is a temporary and voluntary unemployment caused by workers searching for better job opportunities or taking time to switch jobs. Choice C describes cyclical unemployment, which is caused by downturns in the business cycle.

When Does Structural Unemployment Occur