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If an individual is not able to secure a job because his job skills have become obsolete, which unemployment would that be?
  • a)
    Structural unemployment
  • b)
    Frictional unemployment
  • c)
    Cyclic unemployment
  • d)
    Seasonal unemployment
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
If an individual is not able to secure a job because his job skills h...
The correct answer is structural unemployment.
Important Points
  • Structural unemployment- It refers to a mismatch between the jobs available and the skill levels of the unemployed individual. It occurs due to technological changes, fierce competition, etc.
Additional Information
  • Frictional unemployment- It happens when workers voluntarily become unemployed while searching for a better job or moving for unrelated reasons. It is always present in the economy.
  • Cyclic unemployment- It is unemployment that results from a general decline in economic activity such as a recession. Sometimes, a company has to lay off its employees because it is not able to pay its employees.
  • Seasonal unemployment- It occurs when people are unemployed at particular times of the year. It simply means the demand for a specific kind of work and workers change with the change in the season.
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If an individual is not able to secure a job because his job skills have become obsolete, which unemployment would that be?a)Structural unemploymentb)Frictional unemploymentc)Cyclic unemploymentd)Seasonal unemploymentCorrect answer is option 'A'. Can you explain this answer?
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