An example of structural unemployment is a(n):
A) autoworker who is temporarily laid off because of a decline in sales.
B) geologist who is permanently laid off because of an increase in wages won by labour unions.
C) worker at a fast-food restaurant who quits work and attends university.
D) real estate agent who leaves a job in Montreal and searches for a similar,higher paying job in Toronto.

Question

Quizplus · Accepted Answer

Structural unemployment refers to a mismatch between the skills and qualifications of workers and the requirements of available jobs. In this case, the geologist was permanently laid off because of an increase in wages won by labour unions, which means there was a shift in the demand for workers with different skills and qualifications. Options A, C, and D are not examples of structural unemployment because they are caused by temporary changes in the labor market, personal choices made by workers or job search activities, rather than a mismatch in skills and qualifications.

An Example of Structural Unemployment Is A(n)