Structural Unemployment
Definition
Structural unemployment occurs when there is a mismatch between the skills possessed by workers and the requirements of available jobs in the economy.
Analogy
Picture yourself trying to fit a square peg into a round hole - it just doesn't work! Similarly, structural unemployment arises when workers' skills don't align with what employers need, creating an imbalance in the labor market.
Related terms
Technological Change: Advances in technology that can render certain skills obsolete and lead to structural unemployment.
Occupational Shifts: Changes in demand for different types of jobs due to shifts in the economy.
Retraining Programs: Initiatives aimed at helping workers acquire new skills to match the changing demands of the job market.
"Structural Unemployment" appears in:
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