Define Structural and Frictional Unemployment and explain why each of them occurs..

Expert Solution

Structural unemployment refers to the unemployment caused by the fundamental shift that occurs in the economy. It is a long lasting type of unemployment. It take place due to the mismatch between what workers offer and what companies need.

CAUSES OF STRUCTURAL UNEMPLOYEMENT

Technical advancements.- Due to the technical advancements that happens in the industry the unski8lled employees may loose their jobs. The firms replace thee unskilled workers with that of the robots.

Increased competition- Globalization process increased the competition in the world. The firms can make profits only by using cheap labor. Thus they usually set up manufacturing facilities to face the competition. Thus many labors lose their jobs.

The voluntary employment transitions that take place in the economy is known as frictional unemployment. It occurs naturally in a stable or growing economy. The unemployment causes when the employees leave their existing job in search of a new one is frictional unemployment.

CAUSES OF FRICTIONAL UNEMPOLYEMNT.

* The mismatch exist between the employees and available job - If the jobs related to the career and knowledge is not available for the employees it lead to frictional unemployment. In such a situation most of the people leave their jobs and search as new job which matches with their talent and knowledge.

* Dissatisfaction of the workers.- If the workers are not satisfied with the working conditions, organizational climate etc they leave the job. If the employer is not paid salary correctly, no benefits offered etc are major reasons for the dissatisfaction of the employees.

Structural unemployment refers to the unemployment caused by the fundamental shift that occurs in the economy. It is a long lasting type of unemployment. It take place due to the mismatch between what workers offer and what companies need.

CAUSES OF STRUCTURAL UNEMPLOYEMENT

Technical advancements.- Due to the technical advancements that happens in the industry the unski8lled employees may loose their jobs. The firms replace thee unskilled workers with that of the robots.

Increased competition- Globalization process increased the competition in the world. The firms can make profits only by using cheap labor. Thus they usually set up manufacturing facilities to face the competition. Thus many labors lose their jobs.

The voluntary employment transitions that take place in the economy is known as frictional unemployment. It occurs naturally in a stable or growing economy. The unemployment causes when the employees leave their existing job in search of a new one is frictional unemployment.

CAUSES OF FRICTIONAL UNEMPOLYEMNT.

* The mismatch exist between the employees and available job - If the jobs related to the career and knowledge is not available for the employees it lead to frictional unemployment. In such a situation most of the people leave their jobs and search as new job which matches with their talent and knowledge.

* Dissatisfaction of the workers.- If the workers are not satisfied with the working conditions, organizational climate etc they leave the job. If the employer is not paid salary correctly, no benefits offered etc are major reasons for the dissatisfaction of the employees.

Rahul Sunny answered 1 year ago

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