📚 Learning Guide
Labor Supply and Demand Graphing
easy

In a labor supply and demand graph, what is structural unemployment primarily caused by?

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Learning Path
Learning Path

Question & Answer
1
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2
Review Options
3
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4
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Choose the Best Answer

A

A mismatch between skills and jobs available

B

Seasonal fluctuations in employment

C

Cyclical downturns in the economy

D

Temporary layoffs

Understanding the Answer

Let's break down why this is correct

Answer

Structural unemployment occurs when there is a mismatch between the skills that workers have and the skills that employers need. This can happen due to changes in technology or shifts in the economy that make certain jobs less relevant. For example, if a factory that produces typewriters closes down because most people now use computers, workers who only know how to make typewriters may struggle to find new jobs. They may need to learn new skills to be able to work in a different industry, like technology or services. This type of unemployment is not caused by a lack of jobs in general, but rather by the specific skills required for available jobs.

Detailed Explanation

Structural unemployment happens when people's skills don't match the jobs that are open. Other options are incorrect because Some people think that seasonal jobs cause structural unemployment; Cyclical downturns happen when the economy is doing poorly, leading to job losses.

Key Concepts

Structural unemployment
Topic

Labor Supply and Demand Graphing

Difficulty

easy level question

Cognitive Level

understand

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