Question

What category of unemployment includes people who are unemployed for longer periods because they do not have the skills required of the available jobs?
A. Frictional unemployment
B. Structural unemployment
C. Seasonal unemployment
D. Cyclical unemployment

Answer 1

The category of unemployment that  includes people who are unemployed for longer periods because they do not have the skills required of the available jobs is called “Structural unemployment” so option B is the correct one.  

• Structural unemployment occurs when people do not have the skills needed for a job. For example, if you don't know how to use a computer and all the jobs in the market are asking for it, then you don't have the skills needed for the jobs available in the market.

• Frictional unemployment occurs when you are without a job voluntarily maybe because you are searching for a better job.

• Cyclical unemployment occurs due to the different needs of the economy in a certain time and it might change from time to time.

• Seasonal unemployment occurs when certain jobs are needed in a particular season of the year (for example during vacations more jobs are needed in tourism industries)

Answer 2

The answer is B. Structural unemployment

People unemployed for longer periods are under the category of Structural unemployment, which is caused when the unemployed's skills don't correspond to the available jobs. This happens by changes in economy, in cases of a worker finding a job in a new industry, for example, with different skills requirements.

A. Frictional unemployment is the time the unemployed searches for a new job.

C. Seasonal unemployment occurs at certain times of the year.

D. Cyclical unemployment happens when production is low, because consumers are buying less.