Structural Unemployment Flashcards
What is structural unemployment
Structural Unemployment is when a particular industry closes which then loads of people lose jobs.
An example of structural unemployment
An example of Structural Unemployment is Redcar.
What happened in Redcar
In Redcar a steel plant closed down which caused thousands of people to lose their job, this caused many people to look for jobs in the same area and as a result of this many companies that had job openings that paid a certain amount like £25,000 got decreased to £20,000 since people were desperate for a job.
Why couldn’t people move away from Redcar/ what is negative equity
During the Redcar structural unemployment people couldn’t move away to a different area to look for a job as some people were paying a mortgage off for a house and they wouldn’t be able to sell it since their property value has now become less than the remaining mortgage that is left, this is called negative equity.
What do people who experienced structural unemployment end up doing
Most people that experience structural unemployment tend to end up working as chimney sweepers, dog walkers etc which are low paying jobs which cause inequality since the rich are staying rich meanwhile the people who experienced structural unemployment and had to find other jobs that paid a lot less moved down the social mobility ladder which caused the gap between rich and poor to be bigger.
Evaluation of structural unemployment
Structural Unemployment is a major factor for a certain area that is experiencing Structural Unemployment, but over a long period of time it starts getting better since it only has a devastating impact on the people of a specific area not the whole of UK. This inequality tends to be more significant in one place than others which is why it tends to be less important than other factors.
