Understanding Structural Unemployment

in LeoFinance3 months ago

structural unemployment basically occurs when there's a mismatch or a lack of balance if you will between the skills employers need and the skills employees can offer this can happen because one industries collapsed in a certain region for example mines closing down leaving workers behind with skills that aren't needed by other local companies - technology enables companies to function with less and less employees three worker relocation can be difficult because sure maybe those living in smaller towns can find work in a larger city but can they afford to buy a home or even keep up with rent expenses there for students are going after degrees for which there isn't that much actual demand and end up acquiring skills employers aren't interested in five personal preferences or limitations and other words people not wanting to relocate being unable to acquire new skills due to age related reasons etc the list could go on and on the bottom line is this unlike cyclical unemployment that's brought about by let's say a recession structural unemployment can end up being a very tricky long term problem