1. Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemployment. Which type would affect your firm. Explain.© BrainMass Inc. brainmass.com June 4, 2020, 2:22 am ad1c9bdddf
1. Structural unemployment
Structural unemployment occurs when there is a natural lack of the need for workers. Moffat (n.d.) said that "structural unemployment is a unemployment that comes from there being an absence of demand for the workers that are available".
There are basically two factors that cause structural unemployment: changes in technology and changes in the tastes of the consumers.
AmosWeb (n.d.) further explained that "Structural Unemployment is caused by a mismatch between workers' skills and the skills needed for available jobs. Structural unemployment essentially occurs because resources, especially labor, are configured (trained) for a given technology but the economy demands goods and services using another technology. Employers seek workers who have one type of skill and workers seeking employment have a different type of skill. This ...
The solution identifies three types of unemployment and how they affect a firm.