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    Structural Unemployment

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    zainab Muhammad
    Structural unemployment occurs when there is a mismatch between the jobs and skills in the economy. This usually happens as an economy shifts from one sector to another, such as from manufacturing to services. Workers may find their skills are no longer needed, such as ship builders when an industry moves overseas. Unless workers receive help retraining, they will remain unemployed or underemployed.

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    Structural Unemployment

    Uploaded by

    zainab Muhammad
    22 views2 pages
    Structural unemployment occurs when there is a mismatch between the jobs and skills in the economy. This usually happens as an economy shifts from one sector to another, such as from manufacturing to services. Workers may find their skills are no longer needed, such as ship builders when an industry moves overseas. Unless workers receive help retraining, they will remain unemployed or underemployed.

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    Structural unemployment (3)

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    Structural unemployment occurs when there is a mismatch between the jobs and skills in the economy. This usually happens as an economy shifts from one sector to another, such as from manufacturing to services. Workers may find their skills are no longer needed, such as ship builders when an industry moves overseas. Unless workers receive help retraining, they will remain unemployed or underemployed.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views2 pages

    Structural Unemployment

    Uploaded by

    zainab Muhammad
    Structural unemployment occurs when there is a mismatch between the jobs and skills in the economy. This usually happens as an economy shifts from one sector to another, such as from manufacturing to services. Workers may find their skills are no longer needed, such as ship builders when an industry moves overseas. Unless workers receive help retraining, they will remain unemployed or underemployed.

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    Structural unemployment occurs when there is a mismatch

    between jobs and skills in the


    economy
     It usually happens as
    the structure of an
    economy changes e.g. the
    secondary sector is
    declining and the tertiary
    sector is growing
     There is no longer a need
    for a specific type of
    worker e.g. ship builders
    in Glasgow
     Many Western industries
    have relocated
    production to China
    causing structural
    unemployment in their
    economies
     Unless workers receive
    help to retrain, they are
    often
    left unemployed or under-
    employed

    is caused by a fall in AD in an
    Cyclical or demand economy
    deficient unemployment  This typically happens
    during a slow down
    or recession
     The demand for labour
    is a demand
    derived from
    the demand for
    goods/services
     As output falls in the
    economy, firms lay off
    workers
    Seasonal occurs as certain seasons
    come to an end
    unemployment and labour is not
    required until the next
    season
     E.g. fruit pickers;
    summer seaside
    resort workers; ski
    instructors

    occurs when wages


    Real wage unemployment are inflexible at a point higher
    than the free-market equilibrium
    wage
     Usually caused by the
    existence of minimum
    wage laws
     The higher wage creates
    an excess supply of
    labour
     This excess supply
    represents real wage
    unemployment

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