economics medium True/False

Structural unemployment is primarily caused by a mismatch between the skills workers possess and the skills demanded by employers.

  1. True
  2. False

Answer: True

Structural unemployment arises due to fundamental shifts in the economy, such as technological advancements or changes in consumer demand, which render certain skills obsolete. It is a long-term issue that often requires retraining and education to resolve.

Topic Macroeconomics - Unemployment
Exam Relevance UPSC, SSC, Banking
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