Structural Unemployment

Structural Unemployment. Structural unemployment exists when there is a mismatch between labour’s skills and the skills required by employers.

There are two types of structural unemployment:

• Sectoral Unemployment: An economy goes through structural change, maybe mining declines, so skilled miners become unemployed because they do not have the skills to immediately get a different job.
• Technological Unemployment: Maybe new technology is developed which replaces some workers who do not have the skills to immediately get other jobs.