Question

Q. Which among the following factors may lead to “Structural Unemployment” in an economy?

Select the correct answer using the codes given below:

• A.
  1 only
• B.
  2, 3 and 4 only
• C.
  1 and 3 only
• D.
  1, 2, 3 and 4

Answer 1

The correct option is D

1, 2, 3 and 4
Explanation:

Structural unemployment denotes the mismatch between the jobs available and the skill levels of the unemployed. It is caused by fundamental shifts in an economy. Some extraneous factors such as technology, competition, and government policy also leads to structural unemployment in the economy. Under this, although jobs are available, there lies a discrepancy between what companies need and what workers can offer.