Structural Unemployment
Structural unemployment is a type of unemployment caused by a mismatch between the skills of the unemployed workers and the skills required for the available jobs. It occurs when there is a lack of demand for the skills that workers possess, or when the skills of the unemployed workers are not in line with the skills required for the available jobs. Structural unemployment is a long-term problem and is often difficult to solve. It is caused by changes in the economy, such as technological advances, globalization, and shifts in the labor market.
History of Structural Unemployment
Structural unemployment has been a problem since the Industrial Revolution. As technology has advanced, certain jobs have become obsolete, while new jobs have been created. This has caused a mismatch between the skills of the unemployed workers and the skills required for the available jobs. Structural unemployment has been a major issue in the United States since the 1970s, when the manufacturing sector began to decline and the service sector began to grow. This shift in the labor market caused a mismatch between the skills of the unemployed workers and the skills required for the available jobs.
Comparison of Structural Unemployment
| Type of Unemployment | Cause | Duration |
|---|---|---|
| Structural | Mismatch between skills of unemployed workers and skills required for available jobs | Long-term |
| Frictional | Time taken to search for new job | Short-term |
| Cyclical | Business cycle | Short-term |
Summary
Structural unemployment is a type of unemployment caused by a mismatch between the skills of the unemployed workers and the skills required for the available jobs. It is a long-term problem and is often difficult to solve. It is caused by changes in the economy, such as technological advances, globalization, and shifts in the labor market. For more information about structural unemployment, visit the websites of the U.S. Bureau of Labor Statistics, the International Labour Organization, and the Organisation for Economic Co-operation and Development.
See Also
- Frictional Unemployment
- Cyclical Unemployment
- Natural Rate of Unemployment
- Full Employment
- Labor Force Participation Rate
- Unemployment Rate
- Underemployment
- Jobless Recovery
- Job Creation
- Job Search
