MasteryExams
Economics • Economic BasicsEasy

Which of the following describes structural unemployment?

A. Unemployment caused by temporary transitions between jobs
B. Unemployment resulting from shifts in economic demand during recessions
C. Unemployment arising from a mismatch between worker skills and available market jobs✓ Correct Answer
D. Unemployment occurring due to seasonal changes in weather

💡 Solution & Explanation

Structural unemployment arises from permanent shifts in technology or industrial composition that create a fundamental mismatch between the skills possessed by the workforce and the skills demanded by employers. Frictional unemployment accounts for temporary job transitions, cyclical unemployment relates to business cycle downturns, and seasonal unemployment is tied to calendar patterns. Labor market training programs are often deployed to address structural mismatches.

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