Definition of Structural Unemployment

The type of unemployment that is caused when a mismatch of skills occurs between the people who are unemployed and available jobs is structural unemployment. Contrary to cyclical unemployment, the force of the business cycle is not a cause of it and also it is harder to handle it. Such a type of unemployment can make the unemployment rate high. 


It may occur due to the shift in the economy that may leave some make it difficult for some unemployed people to find a job in the new industries. The other cause of structural unemployment is that the technology industry has grown in advance. Machines are now replacing skillful workers.

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