unemploymentWikipedia has the following definition for Structural unemployment:
Structural unemployment is a form of unemployment resulting from a mismatch between demand in the labour market and the skills and locations of the workers seeking employment. Even though the number of vacancies may be equal to, or greater than, the number of the unemployed, the unemployed workers may lack the skills needed for the jobs; or they may not live in the part of the country or world where the jobs are available.
What are some examples of structural unemployment in today’s economy?
Detroit’s unemployment rate is huge: the car-manufacturing that once formed a mainstay of the city’s employment has moved away, the specific skills needed have evolved too, and so Detroit is left with a labour force that is insufficiently mobile, leaving the city with structural unemployment.
Structural unemployment can happen wherever a workforce is insufficiently mobile, in terms of skills or geography. So find anywhere in the world where a sector that was a major employer, has undergone a big move, in terms of where it employs people, and/or the skills it requires, and you may find structural unemployment.
Don’t confuse this with cyclical unemployment: construction has high unemployment rates in a lot of the developed world ex-BASIC at the moment: but that’s only because construction itself is in a trough; not because it’s moved.
At least where I’m from, one prime example is the tech industry, particularly software. Qualified candidates are few and far between. Unfortunately I can’t find a good reference for this, but I assure you that it’s very apparent and growing companies are suffering because of it.
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