Answer to Question #129506 in Macroeconomics for alice

Question

distinguish between structural unemployment and cyclical (demand deficiency) unemployment

Answer 1

Structural unemployment is a type of unemployment which results from permanent dislocations within labor markets, such as a mismatch of skills acquired between those unemployed and the jobs available in the market.One cause of structural unemployment is the advancement in technology in the manufacturing industry where unskilled workers have been replaced by robots.These workers must obtain training in computer operations to be retained in the same industry while,

Cyclical(demand deficiency) unemployment; is a kind of unemployment which changes with the economic cycle. During an economic boom, more jobs are created and the unemployment falls instantly and when the same economy goes into recession, the firms will have to lay off their workers leading to a demand deficient unemployment.