Question

Mr. Dorji is not working currently
because his skills are not relevant for the jobs available in the market. What category of unemployment would Dorji fall in?

Select one:
a. Cyclical Unemployment
b. Structural Unemployment
c. Seasonal unemployment
d. Frictional Unemployment

= Structural Unemployment​

Answer 1

Answer:

b. Structural Unemployment

Explanation:

Structural unemployment exists due to a mismatch between jobseeker's skills and the currently available jobs in the market. This implies that the market has available job opportunities, but the current labor force may require retraining to take up the jobs effectively.

Advancements in technology may cause structural unemployment. In recent years, robots have been replacing unskilled workers. It means these workers must acquire skills through training to have a chance of getting hired elsewhere.