Structural unemployment
What Structural unemployment means in Economics A-Level, as defined for AQA.
Definitions of Structural unemployment
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Reference: AQA
A deeper issue caused by the decline of major industries or a mismatch of skills, arising from occupational or geographical immobility.
Occurs when domestic industries cannot compete with cheaper imports, leading to regional decline and concentrated job losses.
Caused by supply-side constraints such as occupational and geographical immobility, rather than deficient demand.
A supply-side cause of unemployment arising from a skills mismatch, such as a lack of transferable skills.
Arises in obsolete sectors as older products, skills and production methods are rendered obsolete.
Unemployment that arises when frictions such as factor immobility prevent markets from clearing.
Topics that use Structural unemployment
- Employment and unemployment (AQA A-Level)
- Market imperfections (AQA A-Level)
- Technological change (AQA A-Level)
- Trade (AQA A-Level)
Related terms
- Barriers to entry
- Causes of unemployment
- Claimant Count
- Comparative advantage
- Creative destruction
- Cyclical unemployment
- Deadweight welfare loss
- Dynamic efficiency
Using Structural unemployment in the exam
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