Question

What is structural unemployment? Give examples of structural unemployment.

Short answer

Structural unemployment is one of the types of unemployment.

Step-by-step solution

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.

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.

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.