What is Structural Unemployment?
- Structural unemployment is unemployment that results from the mismatch in skills, locations, or other important characteristics between job seekers and the available jobs.
How Do I Remember It?
- Think of structural unemployment as a “structural problem” in the labor market. It’s like a mismatch puzzle where the skills and qualifications of job seekers don’t align with the requirements of available jobs.
Real World Example
- For example, let’s consider the field of computer science. As technology evolves rapidly, the skills required for jobs in this field also change. Suppose there is a sudden increase in demand for cybersecurity experts due to a rise in cyber threats. However, many unemployed individuals with computer science degrees may not have the specialized skills or training in cybersecurity, leading to structural unemployment.
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By: Ryan Aquino
