Question

1. Discuss the causes and consequences for structural unemployment.
2. Discuss the causes and consequences for frictional unemployment.
3. Using a graph discuss the ways and means the government can reduce the structural unemployment.

Answer 1

Ans.

- Structural unemployment refers to people that are unemployed because they do not have the skills required by the openings or reside far away from the jobs

- Structural unemployment is an immediate aftereffect of movements in the economy, remembering changes for innovation or decreases in an industry.

- Frictionally unemployed are people who are not working at the time of filling out the statistical survey because they are taking time to search for a job that matches their skills, interests, and other preferences better than what is currently available, or people who have left one job and are about to start another job.

- The frictionally unemployed includes people who have voluntarily left their previous positions in order to change their jobs, in other words, they are “between jobs,” and those new entrants or re- entrants into the labor force who have not yet found work.

- Frictional unemployment is short- term and transitory in nature . It can make families with restricted reserve funds fall behind bill installments and end up in more obligation. Indeed, even transient unemployment can be upsetting and may lessen the certainty of those without work.

- Frictional unemployment is commonly temporary, while structural unemployment can keep going for quite a long time.

- Structural unemployment is very worried to financial experts, while frictional unemployment is viewed as inescapable and not considered into the unemployment rate.

- Numerous market analysts stay indifferent about frictional unemployment, as its absolutely impossible to prevent it from occurring.

- One reason behind structural unemployment is innovative advances, which can make a few sorts of talented workers become old.

- Structural unemployment can likewise be brought about by a decrease in an industry.

- Since structural unemployment is an immediate consequence of the monetary cycle, financial experts and investigators pay attention to it very. If not tended to, this kind of unemployment can keep going for a considerable length of time, even decades, expanding a country's unemployment rate.