Structural unemployment
Definition. Structural unemployment is long term unemployment arising from a mismatch between the skills, location, or occupation of available workers and the requirements of the jobs on offer, typically caused by lasting changes in the structure of the economy such as the decline of an industry. It persists even when total vacancies exist.
Because the mismatch is fundamental rather than temporary, it is tackled by supply side measures such as retraining, reskilling, and relocation assistance rather than by boosting aggregate demand.
This term belongs to Unemployment in A Level Economics. Read the full chapter for the diagrams, worked examples and exam technique.
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