Question map
The mismatch in the regional or occupational pattern of job vacancies and the pattern of worker availability results in
Explanation
Structural unemployment is a long-term form of unemployment that arises from fundamental shifts in the economy, leading to a mismatch between the skills or locations of job seekers and the requirements of available vacancies [1]. This mismatch typically manifests in two ways: occupational and regional. Occupational mismatch occurs when workers lack the specific skills required for new jobs, often due to technological changes or industrial decline [1]. Regional mismatch occurs when job vacancies exist in specific geographic areas, but workers are unable or unwilling to relocate to those regions [1]. Unlike cyclical unemployment, which is caused by temporary economic downturns, structural unemployment persists even during periods of economic growth because the labor supply does not align with the labor demand's structural requirements . Disguised unemployment, by contrast, refers to redundant labor with zero marginal productivity, common in the agricultural sector [4].
Sources
- [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Different types of Unemployment: > p. 272
- [2] https://www.rba.gov.au/education/resources/explainers/unemployment-its-measurement-and-types.html
- [4] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 8: Inclusive growth and issues > Different types of Unemployment: > p. 273