Question

If an individual is not able to secure a job because his job skills have become obsolete, which unemployment would that be?
1. Structural unemployment
2. Frictional unemployment
3. Cyclic unemployment
4. Seasonal unemployment

Answer 1

Correct Answer - Option 1 : Structural unemployment

The correct answer is structural unemployment.

• Structural unemployment- It refers to a mismatch between the jobs available and the skill levels of the unemployed individual. It occurs due to technological changes, fierce competition, etc.

• Frictional unemployment- It happens when workers voluntarily become unemployed while searching for a better job or moving for unrelated reasons. It is always present in the economy.
• Cyclic unemployment- It is unemployment that results from a general decline in economic activity such as a recession. Sometimes, a company has to lay off its employees because it is not able to pay its employees.
• Seasonal unemployment- It occurs when people are unemployed at particular times of the year. It simply means the demand for a specific kind of work and workers change with the change in the season.