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Chapter 21: Q 27. (page 524)

What is structural unemployment? Give examples of structural unemployment.

Short Answer

Expert verified

Structural unemployment is one of the types of unemployment.

Step by step solution

01

Step 1. Unemployment

The situation when a person who is able to work and is willing to work is looking for work consistently but is not able to find work.

02

Step 2. Structural unemployment

Structural unemployment is a type of involuntary unemployment which is caused due to the mismatch between the workers and skills required and this is also called the skill gap.

03

Step 3. Examples

These are the examples of structural unemployment:

1. Like in the US there is a decline in the manufacturing sector so the manufacturing jobs are shifted to China which is rising in manufacturing products, so this comes under structural unemployment.

2. Because of technology change and automation various workers lose their jobs. Like typewriters are substituted by computers.

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Most popular questions from this chapter

Are U.S. unemployment rates typically higher, lower, or about the same as unemployment rates in other high-income countries?

Assess whether the following would be counted as “unemployed” in the Current Employment Statistics survey.

a. A husband willingly stays home with children while his wife works.

b. A manufacturing worker whose factory just closed down.

c. A college student doing an unpaid summer internship.

d. A retiree.

e. Someone who has been out of work for two years but keeps looking for a job.

f. Someone who has been out of work for two months but isn’t looking for a job.

g. Someone who hates her present job and is

actively looking for another one.

h. Someone who decides to take a part-time job because she could not find a full-time position.

Whose unemployment rates are commonly higher in the U.S. economy:

a. Whites or nonwhites?

b. The young or the middle-aged?

c. College graduates or high school graduates?

If you are out of school but working part-time, are you considered employed or unemployed in U.S. labor statistics? If you are a full-time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greeter at Wal-Mart are you considered employed or not in the labor force?

A country with a population of eight million adults has five million employed, 500,000 unemployed, and the rest of the adult population is out of the labor force. What’s the unemployment rate? What share of the population is in the labor force? Sketch a pie chart that divides the adult population into these three groups.
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