What is structural unemployment?

Economics Unemployment Questions



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What is structural unemployment?

Structural unemployment refers to a type of unemployment that occurs when there is a mismatch between the skills and qualifications of job seekers and the requirements of available job openings. It is caused by changes in the structure of the economy, such as technological advancements, shifts in consumer preferences, or changes in the location of industries. Structural unemployment is often long-term and can be difficult to address through traditional economic policies.