structural unemployment

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Structural unemployment refers to a type of unemployment caused by fundamental shifts in the economy’s structure, such as changes in technology, industry locations, or global trade patterns. It arises from a mismatch between workers’ skills and the demands of available jobs, making it persistent and requiring retraining or relocation to resolve.

  • Technological unemployment: This form occurs when innovations in labor-saving technology displace workers, automating tasks and reducing the need for human labor in specific sectors.
  • Regional unemployment: It results from the concentration of declining industries in particular geographic areas, leaving local workers jobless while opportunities exist elsewhere in the country.
  • International unemployment: Also known as trade-related unemployment, this happens when increased competition from foreign imports reduces demand for domestic products, leading to job losses in import-competing industries.