I had not heard structural unemployment theorized as a major cause for the current high unemployment rate, but this article presents a reasonable case. In my opinion, current unemployment can be attributed modestly to structural factors.
As a reminder, structural unemployment is defined as unemployment arising from technical change such as automation, or from changes in the composition of output due to variations in the types of products people demand. This runs counter to cyclical unemployment, which is defined as workers losing their jobs due to business cycle fluctuations in output, i.e. the normal up and down movements in the economy as it cycles through booms and recessions over time.
No comments:
Post a Comment