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Question : Which type of unemployment occurs when individuals do not have the necessary skills for available jobs?

 

Option 1: Structural unemployment

Option 2: Frictional unemployment

Option 3: Cyclical unemployment

Option 4: Disguised unemployment


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Structural unemployment


Solution : The correct answer is (a) Structural unemployment. 

Structural unemployment arises due to a mismatch between the skills and qualifications of the workforce and the requirements of available job opportunities.

Structural unemployment typically occurs when there are changes in the structure of the economy, such as technological advancements, shifts in consumer preferences, or changes in the patterns of production. As a result, certain industries or occupations may experience a decline in demand for labor, while new industries or occupations may emerge, requiring different skill sets.

 

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