Question : Which of the following is a type of unemployment caused by changes in the structure of industries?

Option 1: Frictional unemployment

Option 2: Seasonal unemployment

Option 3: Structural unemployment

Option 4: Cyclical unemployment

Correct Answer: Structural unemployment

Solution : The correct answer is (c) Structural unemployment

Structural unemployment is the type of unemployment caused by changes in the structure of industries, such as technological advancements, shifts in consumer demand, or changes in the organization of production. It occurs when there is a mismatch between the skills and qualifications of workers and the requirements of available jobs.

When industries undergo structural changes, certain jobs may become obsolete while new jobs requiring different skills emerge. This can lead to unemployment as workers may not possess the necessary skills or qualifications for the new jobs. Structural unemployment is typically a longer-term phenomenon and requires workers to acquire new skills or transition to different industries to find employment.

Frictional unemployment, on the other hand, refers to temporary unemployment that occurs as individuals transition between jobs or enter the labor force for the first time. It is typically considered a natural and temporary form of unemployment.

Seasonal unemployment occurs when individuals are unemployed due to seasonal fluctuations in demand for certain industries, such as agriculture or tourism. It is characterized by predictable patterns and is often temporary in nature.

Cyclical unemployment is associated with the business cycle and occurs during economic downturns or recessions when there is a decline in overall economic activity. It is typically caused by a decrease in demand for goods and services, leading to layoffs and job losses across various industries.