Environmental regulation reduces the demand for Saskatchewan coal,and the unemployment rate in Saskatchewan increases.This is an example of
A)frictional unemployment.
B)cyclical unemployment.
C)structural unemployment.
D)regulatory unemployment.

Question

Quizplus · Accepted Answer

This scenario describes structural unemployment, which occurs when there is a mismatch between the skills and qualifications of the available workforce and the requirements of available jobs. In this case, the environmental regulations have reduced the demand for coal, which is a major industry in Saskatchewan. This has led to job losses in the coal mining sector, but these workers may not have the skills or qualifications needed to find employment in other industries. Therefore, there is a structural mismatch between the workforce and available jobs, which results in unemployment. Frictional unemployment refers to the temporary unemployment that occurs when people are between jobs, while cyclical unemployment occurs when there is a downturn in the economy. Regulatory unemployment is not a recognized type of unemployment.

Environmental Regulation Reduces the Demand for Saskatchewan Coal,and the Unemployment