Answer to Question #85359 in Microeconomics for Neima

Question

Why is structural unemployment a more difficult problem for the economy and for industrial workers than other types of unemployment?

Answer 1

Structural unemployment is a more difficult problem for the economy and for individual workers than other types of unemployment because it reduces the demand for workers and their skills. It isn’t something that can be alleviated by moving to find a job or being in a good expansion in the business cycle.