Future Business Leader Achievments (FBLA) Economics Practice Exam

Which type of unemployment can occur when workers’ skills do not match the job requirements?

1. Frictional unemployment

2. Structural unemployment

3. Cyclical unemployment

4. Seasonal unemployment

The correct answer is: Structural unemployment

The type of unemployment that occurs when workers' skills do not match the job requirements is structural unemployment. This form of unemployment arises from changes in the economy that create a mismatch between the skills that workers possess and the skills needed for available jobs. For example, advancements in technology can render certain skills obsolete, leading to workers being unemployed because they do not have the necessary qualifications for new job opportunities. Structural unemployment often requires workers to undergo training or education to adapt to the new job market conditions. In contrast, frictional unemployment involves temporary periods of time when individuals are between jobs, often due to voluntary transitions. Cyclical unemployment is linked to the overall economic cycle and fluctuates with the rise and fall of economic activity. Seasonal unemployment occurs due to variations in demand for labor during different times of the year, such as agricultural seasons or holiday-related jobs. Thus, structural unemployment specifically points to the skill mismatch in the job market, making it the correct choice in this context.