Structural unemployment occurs:
A) Because of a mismatch between skills and jobs.
B) When firms fail because of a seasonal downturn.
C) When an industry experiences a cyclical downturn.
D) When there is inadequate demand for jobs.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a mismatch between the skills of the available workforce and the skills required by the available jobs. This can be caused by changes in technology, changes in the structure of the economy, or changes in consumer preferences. This type of unemployment is often long-term and difficult to address through short-term economic policies.

Structural Unemployment Occurs