Th2.1: Structural Unemployment

Question 1

Why is this a much more serious form of unemployment?

Answer 1

it is a long term decline in demand in an industry leading to reduction in employment, perhaps because of increasing international competition or technology

Question 2

What is structural unemployment?

Answer 2

where the demand for labour is lower than the supply in an individual labour market e.g ship building

Question 3

Why will people remain unemployed?

Answer 3

due to the lack of geographical and occupational mobility, and therefore need to be retrained

Question 4

What are the three different types of structural unemployment?

Answer 4

Regional unemployment
Sectoral unemployment
Technological unemployment

Question 5

Define regional unemployment

Answer 5

where certain areas of a country suffer from very low levels of employment due to industry closures - can cause fall in demand for other businesses forcing more closures and job losses

Question 6

Define sectoral unemployment

Answer 6

where one sector (primary, secondary or tertiary) suffers a dramatic fall in employment

Question 7

Define technological unemployment

Answer 7

where an improvement in technology means that jobs are replaced