Definition
- Structural unemployment
- Structural unemployment is unemployment among people who lack the skills the labour market values, often because demand has shifted away from the skills they have.
Example
Can you think of an example of structural unemployment?
A steelworker in south Wales loses his job when the plant closes. The new jobs nearby are in care and software, and he lacks the skills they need, so a recovery in spending will not bring his job back.
Test yourself
Can you name five types of unemployment?