📚 Learning Guide
Skilled Labor and Economic Growth
hard

How can a shortage of skilled labor impact economic growth in a country experiencing structural unemployment?

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Choose the Best Answer

A

It can lead to increased productivity and innovation.

B

It can hinder economic growth by limiting the ability of industries to expand.

C

It can reduce the need for education and training programs.

D

It can result in a higher level of employment in low-skilled jobs.

Understanding the Answer

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Answer

A shortage of skilled labor can slow down economic growth in a country facing structural unemployment because businesses struggle to find workers with the right abilities. When companies cannot hire skilled employees, they may not be able to produce goods and services efficiently, leading to less overall output. For example, if a tech company needs software developers but can't find any, it might delay projects and miss out on profits. This lack of productivity can lead to lower wages and fewer job opportunities, as companies may not expand or invest. Ultimately, without skilled workers, the economy can stagnate, making it harder for the country to grow and improve living standards.

Detailed Explanation

When there aren't enough skilled workers, businesses can't grow. Other options are incorrect because Some might think fewer skilled workers means more creativity; It's a common belief that less demand for skilled workers means less need for training.

Key Concepts

Education and training
Skilled labor shortages
Structural unemployment
Topic

Skilled Labor and Economic Growth

Difficulty

hard level question

Cognitive Level

understand

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