Structural unemployment results
A)when a reduction in consumer income reduces demand for products.
B)when individuals enter the labour market in June following graduation.
C)when workers face layoffs following a decrease in economic activity.
D)when consumers' demand for a product falls so dramatically that workers specializing in the production of that product find themselves out of work.

Question

Quizplus · Accepted Answer

Structural unemployment occurs when there is a long-term shift in the economy, such as a change in technology or consumer preferences, that results in a decline in demand for a particular product or industry. As a result, workers who specialize in that industry may find themselves permanently without jobs. This is different from cyclical unemployment, which is caused by fluctuations in the business cycle and can be temporary. Choices A, B, and C all describe cyclical unemployment, not structural unemployment.

Structural Unemployment Results