What is Structural Unemployment – Characteristics and Types

The structural unemployment is a type of unemployment caused by a mismatch in the economy. There are many elements that can influence this, from the distribution of wealth and productivity at the agrarian level, to an inefficient public administration.

In terms of economy and statistics, they often refer to unemployment as unemployment, there are many types of unemployment, of which structural unemployment or structural unemployment is one of them we will learn more from below.

What is Structural Unemployment?

This is one of the most complex types of unemployment to end, it occurs when companies are not able to find the right profile of people to take care of the company. That is, it has nothing to do with shortage of demand but with a lack of qualified people to meet what employers need.

Characteristics of Structural Unemployment

The causes of unemployment can be very varied; however, the causes of general unemployment often do not apply to unemployment or structural unemployment.

• It is characterized by the mismatch between quality and market characteristics that have to do with supply and demand.
• It is also characterized by several mismatched or non-adjusted economic factors that have to do with the domestic economy and a market that is unable to efficiently resolve this difference.

Causes of Structural Unemployment

Experts say that one of the fundamental causes for structural unemployment is inequality with respect to what is known as income distribution; this concept of income distribution has to do with how resources are distributed, the result of the activity economic

All this is seen as a domino effect as this brings as we mentioned in the characteristics of structural unemployment , a mismatch in supply and demand or overproduction, this in a difficult cycle to overcome the unemployment of overproduction.

Many times their causes are also related to technology because, unlike another type of unemployment (see more in technological unemployment), this has to do with the inability of companies to absorb a workforce that has a mass of capital invested in means of production i.e. labor force.

Solutions to Structural Unemployment

To solve the structural unemployment, there are some measures which are related to the interventionism, that is to say actions that from the public administration regulate the processes that hinder the correct functioning of the structure of the different companies.

Many measures that can be taken in this area can be the reduction of working hours or the redistribution of income. At one point it is necessary to understand the new technologies applied to production reduce the number of employees needed for certain tasks.

Other solutions elude the intervention of the public sector and bet for the liberation of the market, eliminating various fiscal policies, this refers directly to privatization, and these measures are known in some countries as structural measures or structural adjustment.

From this point of view it is true that the new technologies leave many unnecessary jobs, but on the other hand open the possibility of new jobs at a technical level and qualified to operate these new technologies optimally.

Types of Structural Unemployment

Undoubtedly one of the elements most studied by the economy is unemployment, its causes and types, since this is a problem that affects even the most developed countries, although in the way that affects those in the process of development.

Regardless of what kind of unemployment we refer to, its consequences affect the economy, which is why it is important to know them:

• Cyclic stop

This type of unemployment is related to the coming and going of private companies and how they affect the number of employees during periods of expansion and recession. That is, this type of unemployment increases in times of economic recession, this is due to how the general economic situation worsens and how it improves when the economic situation begins to expand

Many governments in the world try to take measures so that during periods of recession there is no high rate of unemployment, trying to make the transition between economic periods more bearable.

• Seasonal unemployment

It is related to those jobs that are only needed during a certain period of the year, increasing unemployment during another time of the year, whose only solution is to diversify productivity so that it is not necessary to depend on jobs that occur only in a certain season or time of the year.

There is also frictional unemployment which occurs when a person is taking a moment to study, or rest or fined a better type of employment, the only way to combat it is with greater opportunity to scale at work in the companies.

As mentioned, regardless of the type of unemployment, it is necessary to combat it effectively, especially among young people, providing ways to be useful and trying to humanize and give another approach to work.