ACCA BT · Chapter 3 · Question 8 of 11
Workers lose their jobs because the coal mining industry in their region has permanently declined, and their skills are not needed by expanding industries. What type of unemployment is this?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Structural unemployment
Explanation
Structural unemployment results from long-term changes in the structure of the economy, leaving a mismatch between workers' skills or locations and available jobs. Frictional unemployment is the short time spent moving between jobs, cyclical unemployment arises from a downturn in the business cycle, and seasonal unemployment is linked to particular times of year.
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