Question

1.25 Structural unemployment

1] Arises during recessionary periods when aggregate demand and demand for labour are low.

[2] Is the inability of an economy due to structural imbalances to provide employment for the total labour force even at the peak of the business cycle?

[3] Is due to normal and expected changes in economic activity during the course of a single year.

[4] Arises because of the normal labour turnover that occurs in any dynamic economy and the time lags in the reemployment of labour.

[5] Occurs when there is an underutilisation of worker's skills.

Answer 1

Is the inability of an economy due to structural imbalances to provide employment for the total labour force even at the peak of the business cycle