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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?
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If an individual is not able to secure a job because his job skills h...
Understanding Structural Unemployment
Structural unemployment occurs when there is a mismatch between the skills of the workforce and the needs of employers. This type of unemployment is often a result of technological advancements, shifts in consumer demand, or changes in the economy that render certain skills obsolete.
Key Characteristics of Structural Unemployment:
- Obsolescence of Skills: When an individual's skills no longer meet the demands of the job market, they struggle to secure employment.
- Long-term Nature: Structural unemployment tends to be more persistent compared to other forms of unemployment, as it often requires significant retraining or education to adapt to new market demands.
- Economic Changes: Factors such as automation, globalization, and changes in industry can lead to structural unemployment as certain sectors decline while others emerge.
Examples:
- Technological Advancements: A factory worker may lose their job due to the introduction of robots that perform their tasks more efficiently.
- Industry Shifts: A coal miner may find themselves unemployed as the demand for coal decreases and renewable energy sources become more prevalent.
Conclusion:
In the scenario where an individual cannot secure a job due to obsolete job skills, it is classified as structural unemployment. This highlights the importance of continuous learning and adaptability in today's rapidly changing job market. Addressing structural unemployment often involves retraining programs and education initiatives to help workers transition into new roles that match current market demands.
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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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