Structural Unemployment

Structural Unemployment

Unemployment resulting from changes in the basic composition of the economy. These changes simultaneously open new positions for trained workers.

Notes:

An example of structural unemployment is the technological revolution. Computers may have eliminated jobs, but they also opened up new positions for those who have the skills to operate the computers.

See also: Coincident Indicator, Cyclical Unemployment, Frictional Unemployment, Lagging Indicator, Natural Unemployment