Asked by Ashly De Jesus on May 12, 2024
Verified
When individuals are out of work because they do not have the skills necessary to perform available jobs,we call this
A) structural unemployment.
B) the natural rate of unemployment.
C) cyclical unemployment.
D) frictional unemployment.
E) full employment (5 to 6 percent unemployment) .
Structural Unemployment
A type of unemployment resulting from a discrepancy between the skills available in the workforce and those required by employers.
Skills
The abilities and expertise acquired through training or experience that enable an individual to perform tasks effectively.
Natural Rate
The level of unemployment or interest that exists when an economy is balanced, not affected by short-term fluctuations or cyclical, structural factors.
- Differentiate between various types of unemployment and their causes.
Verified Answer
SS
Shelia SessionMay 13, 2024
Final Answer :
A
Explanation :
Structural unemployment arises when the demand for certain skills and jobs decreases or disappears due to changes in technology, industry, or labor markets. Workers who lack necessary skills or experience become structurally unemployed, as they cannot fit into the new jobs and industries that continue to develop. This type of unemployment is different from frictional unemployment, which results from workers switching between jobs or moving to new areas, and cyclical unemployment, which is caused by fluctuations in overall economic activity. The natural rate of unemployment refers to the level of unemployment that occurs when the labor market is in equilibrium and is not related to any particular type of unemployment. Full employment is the level of unemployment that results when the labor market is functioning efficiently, but it is typically not zero, as some people may be temporarily between jobs or seeking new ones.
Learning Objectives
- Differentiate between various types of unemployment and their causes.