Definition of Structural unemployment:
Structural unemployment is caused by forces other than the business cycle. This means that structural unemployment can last for decades and may need radical change to redress the situation. If structural unemployment is not addressed, it can increase the unemployment rate long after a recession is over and increase the natural rate of unemployment, which is also known as “frictional unemployment.”.
Unemployment resulting from industrial reorganization, typically due to technological change, rather than fluctuations in supply or demand.
Structural unemployment is a longer-lasting form of unemployment caused by fundamental shifts in an economy and exacerbated by extraneous factors such as technology, competition, and government policy. Structural unemployment occurs because workers lack the requisite job skills or live too far from regions where jobs are available and cannot move closer. Jobs are available, but there is a serious mismatch between what companies need and what workers can offer.
Joblessness caused not by lack of demand, but by changes in demand patterns or obsolescence of technology, and requiring retraining of workers and large investment in new capital equipment.
How to use Structural unemployment in a sentence?
- Technology tends to exacerbate structural unemployment, marginalizing certain workers and rendering particular jobs, such as manufacturing, obsolete.
- With all of the new technology that keeps popping up many people are getting fearful that there may be more structural unemployment coming,.
- Structural unemployment is long-lasting unemployment that comes about due to shifts in an economy.
- The implementation of various mechanized systems and robotic workers meant more and more workers were out of jobs and subsequently created a climate ripe for structural unemployment .
- In addition to a reduction in structural unemployment, deregulation also lowers the incentive for surprise inflation.
- Structural unemployment can last for decades and usually requires a radical change to reverse.
- This type of unemployment happens because though jobs are available, there’s a mismatch between what companies need and what available workers offer.
- When factories arose to produce that good, not as many people were required to run the machinery so there arose structural unemployment in that sector.
Meaning of Structural unemployment & Structural unemployment Definition