The mismatch in the regional or occupational pattern of job vacancies and the pattern of worker availability results in
- A.Structural unemployment
- B.Disguised unemployment
- C.Altered unemployment
- D.Cyclical unemployment
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Explanation
The correct answer is A, Structural unemployment. When the jobs on offer need skills, or are in places, that do not match the workers available, people stay jobless even though vacancies exist.
Structural unemployment comes from long-term changes in the economy: new technology, the decline of old industries, or a shift of demand from one region to another. A handloom weaver who loses work to power looms, or a worker in one state while the jobs are in another, cannot simply take the vacancies that exist. It usually lasts longer than other kinds and is reduced by skill training, education and help with moving to where the work is. India's Skill India programme targets this kind of unemployment.
B is wrong: disguised unemployment means more people working on a job than needed, as on small family farms, where removing some does not cut output.
C is wrong: "altered unemployment" is not a recognised type of unemployment.
D is wrong: cyclical unemployment rises and falls with the business cycle, during a recession or slowdown.
Exam tip: skill or place mismatch = structural; recession = cyclical; extra hands on a farm = disguised; between jobs = frictional.