What is structural unemployment?

Structural unemployment, one of the main types of unemployment, is the mismatch between vacancies and job seekers in the economy. For example, local job seekers may be generally qualified, but lack the specific skills needed for available work. This type of unemployment can also result if sufficiently qualified workers are looking for a job, but available jobs are in another part of the country or world. Any differences between the abilities of available workers and the requirements for open positions can be considered as structural unemployment.

The labor market dynamics tends to cause structural unemployment. Moving market conditions, such as a change in technology, is constantly changing the demand for work. Training can become the main problem because workers are trying to predict the future labor market. Training for specialized skills requires a significant amount of time and resources. The resulting delay between real demand for work and current withAdou skill -off workers are one of the main causes of structural unemployment. On a large scale, such as the United States economy, the transition to another part of the country for work usually represents the main obstacle to workers. Movement financial costs are often trading. Other obstacles to motion include family ties and regional life preferences.

seasonal unemployment can also cause this type of unemployment. Jobs that exist over only one part of the year leave workers without work at the end of the season. In the colder climate, construction work can only take place in summer. Similarly, there are many agricultural jobs only for a fraction of the year. If workers are unable to find other jobs for the remaining months of the year, structural unemployment may occur.

Remedia for structural unemployment differs from Jincent types of unemployment. This problem cannot generally be eliminated by one -time stimulus measurement, as this type of unemployment does not include jobs. Some have suggested that government programs for retraining workers can alleviate the problem. In addition, tax incentives could be provided to companies that locate jobs in areas with excess work. Despite these responsive measures, it is doubtful that this type of unemployment can be completely excluded. As long as there are uncertainty in an economy, such as technological innovations and evolving public taste, structural unemployment is likely to exist to some extent.