Structural unemployment

Definition

Structural unemployment occurs when there is a long-term mismatch between the skills of workers and the demands of jobs available in the economy, often due to technological changes, globalization, or shifts in industries. This type of unemployment persists even during periods of economic growth because the jobs available do not align with the workforce's capabilities.

Related terms

Globalization: The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to changes in job markets and sometimes structural unemployment.

Technological Change: Innovations and advancements in technology that can alter job markets by creating new types of jobs while making others obsolete, contributing to structural unemployment.

Job Retraining Programs: Initiatives designed to help workers gain new skills that are in demand in the current economy, aiming to reduce structural unemployment by aligning workforce skills with job market needs