Structural unemployment, Microeconomics

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Structural Unemployment:

This is unemployment resulting from changes in the pattern of demand for goods and services or changes in technology.These changes may in turn alter the structure of the total demand for labour rendering some particular skill less in demand or may become obsolete. The demand for other skills however may expand. Unemployment in this case is the result of the composition of the labour force which does not respond quickly to new structures of job opportunities.


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