Question

Structural unemployment is caused by

a. temporary layoffs in industries such as construction.
b. shifts in the economy that make certain job skills obsolete.
c. short-term changes in the economy.
d. the impact of the business cycle on job opportunities.

Answer 1

B) shifts in the economy that make certain job skills obsolete.

Step-by-step explanation:

There are three types of unemployment:

1. Structural Unemployment (involuntary) : the skills of the worker do not match the skills required by employers.
2. Cyclical Unemployment (involuntary): slow economic growth or economic contraction cause that employers require less workers.
3. Frictional Unemployment (voluntary): someone quits his/her job voluntarily because they are searching for a better job, or new workers enter the labor force.