structural unemployment


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Structural Unemployment

Unemployment that results from a change in the way the local or national economy functions. For example, suppose the economy in a region is heavily dependent on exploiting a single, natural resource. If that resource is entirely consumed, the trained and untrained workers working on exploiting it will find themselves subject to structural unemployment, since there are no other companies exploiting that natural resource because there is no more natural resource. On the plus side, these gaps in the economy can open up new opportunities. See also: Retraining.

structural unemployment

see UNEMPLOYMENT, STRUCTURE OF INDUSTRY.

structural unemployment

the long term UNEMPLOYMENT caused by the decline of certain industries and changes in production processes. It occurs where changing demand patterns in an economy dislocate existing production patterns to the extent that labour becomes redundant. This is a long-term phenomenon requiring the work force to seek other jobs outside the declining industries, possibly in a different part of the country. The problem is one that most governments have had to deal with, for example, the decline in the heavy engineering industries, steel and shipbuilding, in the north of England and in Scotland. Technological change and foreign competition forced the reduction in demand for goods associated with those industries, which resulted in mass unemployment of labour. Countering such unemployment requires extensive occupational retraining programmes for the displaced workers, assistance with moving to new areas where jobs are available, and financial inducements to encourage new growth industries to move to regions blighted by concentrations of declining industries. See REGIONAL POLICY, DEINDUSTRIALIZATION, SUPPLY-SIDE ECONOMICS.
References in periodicals archive ?
If this change in labor demand is temporary, it is considered cyclical unemployment; if it is permanent, the change is known as structural unemployment.
They stressed that complementary measures will be needed to bring down the high level of structural unemployment.
However, the impact of economic downturns on structural unemployment will depend on many factors.
However policies that are geared toward easing frictional or structural unemployment can boost employment without necessarily affecting inflation.
Developed countries often experience structural unemployment where the persistent mismatch of skills and available jobs requires job seekers to obtain additional education or vocational training.
On the socio-economic front, issues like reducing inequities in wealth and tackling long-term structural unemployment need urgent attention.
Long-term unemployment has been rising in developed countries, which could lead to higher levels of structural unemployment.
On Monday, Andor and Oresharski discussed the future of Bulgaria's pension reform and its structural unemployment.
Spencer Thompson, economic analyst at IPPR, said: "If Britain is to get to the vision of full employment recently set out by Chancellor George Osborne, the Government needs to do more to help small firms hire people who are suffering from structural unemployment and economic inactivity.
The unemployment problem chiefly affects low-skilled workers, an important influx of immigrants may increase a country's low-skilled unemployment rate, and low-skilled workers' cyclical unemployment may determine structural unemployment.
Birmingham has a long-term structural unemployment problem and there is a need to focus on getting apprentices into business.
Such severe income disparity was what Oxfam and the World Economic Forum cited as a top global risk, exacerbated by structural unemployment and underemployment, mostly of the young.

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