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Structural unemployment

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of the 9.5 percent unemployment rate at the time could be the result of a mismatch. Other studies argued that a skills mismatch was a minor factor, since unemployment rose for nearly all industries and demographic groups during the "Great Recession." A Federal Reserve Bank of New York study found no strong evidence of mismatch for construction workers, a group often alleged to be prone to structural unemployment because of the regional nature of construction.
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There has been considerable debate over how much a role structural unemployment plays in the persistently high unemployment rates seen in much of the world since the 2007-09 global recession. , then president of the Federal Reserve Bank of Minneapolis, said in a 2010 speech that as much as 3 percent
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Large-scale changes in the economy can be particularly challenging. For example, if a large company is the only employer in a given industry for a certain city, when it closes workers will have no competing company to move to, and the local education system and government will be burdened with many
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blames poor human resource practices for complaints that not enough qualified job applicants are found, such as replacing skilled HR workers with software that is less capable of matching resumes that exhibit the right combination of skills but without word-for-word alignment with a job posting.
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may be seen as a kind of structural unemployment, since it is a type of unemployment that is linked to certain kinds of jobs (construction work, migratory farm work). The most-cited official unemployment measures erase this kind of unemployment from the statistics using "seasonal adjustment"
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Structural unemployment is often associated with workers being unable to shift from industry to industry, but it can also happen within industries as technology changes the nature of work within a given field. This is a driver of skills gaps as technology and globalization "hollow out" many
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Some economists posit that the minimum wage is in part to blame for structural unemployment, although structural unemployment does exist even in the absence of a minimum wage. They assert that because the governmentally imposed minimum wage is higher than some individuals'
345:: if an economy suffers from long-lasting low aggregate demand, it means that many of the unemployed become disheartened, while their skills (including job-searching skills) become "rusty" and obsolete. Problems with debt may lead to homelessness and a fall into the 395:
or suffers a debilitating physical condition) it is the responsibility of the state to provide for the citizen in question. When a minimum wage does not exist, more people may be employed, but they may be unemployed and thus unable to fully provide for themselves.
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and hiring from within an organization. Instead, companies attempt to avoid the time and cost of on-the-job training by hiring people from who already have experience doing the same job elsewhere (including at a competitor).
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in any given job, those individuals remain unemployed because employers legally cannot pay them what they are "worth." Others believe that in such cases (for example, when a person is
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New technology significantly increases productivity, but requires a smaller number of higher-skilled workers. For example, fewer agricultural workers are needed when the work is
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people who need job re-training all at once (possibly at the same time the local economy fails to create new jobs due to decreased overall demand).
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caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the
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Employers may also reject workers for reasons unrelated to skills or geography, so for example structural unemployment can also result from
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makes a specific expertise useless. For example, demand for manual typesetters disappeared with digitization of printing plate production.
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From a larger perspective, there can be a number of reasons for structural unemployment across large numbers of workers:
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Competition causes the same jobs to move to a different location, and workers do not or cannot follow. Examples:
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caused a temporary spike in demand for information technology workers, which was suddenly reversed in 2000–2001.
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if a match will eventually be made, perhaps with a different employer.) Cappelli also points to a decrease in
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Because it requires either migration or re-training, structural unemployment can be long-term and slow to fix.
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Liberty Street Economics blog, Federal Reserve Bank of New York, March 29, 2012; accessed 2016-06-17
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Brookings Papers on Economic Activity, Brookings Institution, Spring 2014; accessed 2016-06-17
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Inability to relocate due to inability to sell a house (for example due to the collapse of a
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The Lights in the Tunnel: Automation, Accelerating Technology and the Economy of the Future
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increases reduce the number of workers (with the same or similar skills) needed to satisfy
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The End of Work: The Decline of the Global Labor Force and the Dawn of the Post-Market Era
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and Michael Osborne found in 2013 that almost half of U.S. jobs are at risk of automation.
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middle-skill jobs, positions that traditionally have not required a college degree.
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Structural unemployment is one of three categories of unemployment distinguished by
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Lagging Demand, Not Unemployability, Is Why Long-term Unemployment Remains So High
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Why Good People Can't Get Jobs: The Skills Gap and What Companies Can Do About It
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has caused many manufacturing jobs to move from high-wage to low-wage countries.
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Decision not to relocate, in order to stay with a spouse, family, friends, etc.
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Education and work exist in two alternative worlds that don’t really connect
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From an individual perspective, structural unemployment can be due to:
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Choice of a field of study which did not produce marketable job skills.
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Structural unemployment may also be encouraged to rise by persistent
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Inability to afford or decision not to pursue further education or
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Structural unemployment is hard to separate empirically from
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While temporary changes in overall demand for labor cause
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cities to lower-cost cities in the South and rural areas.
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can cause jobs to move as competitive advantage changes.
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Frey, Carl Benedikt; Osborne, Michael A. (2017-01-01).
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List of countries by rate of fatal workplace accidents
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Productivity improving technologies (economic history)
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Rockefeller Foundation, May 2016; accessed 2016-06-17
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The structure of the structural unemployment question
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Brainy Robots To Lead To Longer Unemployment Lines?
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Urban Institute, Aug. 20, 2013; accessed 2016-06-17
136:that make the job skills of many workers obsolete. 49:. Unsourced material may be challenged and removed. 570:Bridge the Gap: Rebuilding America’s Middle Skills 322: 2710: 683: 809: 672:CyberEconomics: “Overview: Resource Markets.” 307:after harvesting is complete, and workers in 513:Technological Forecasting and Social Change 506: 816: 802: 2540:Comprehensive Employment and Training Act 594:"Consequences of Long-Term Unemployment," 109:Learn how and when to remove this message 2384:Job losses caused by the Great Recession 1066:Simultaneous recruiting of new graduates 741:, New York: Tarcher–G.P. Putnam's Sons, 2565:Credentialism and educational inflation 2711: 2436:List of countries by unemployment rate 731: 229:to automate manufacturing. A study by 157: 797: 1334:Practice-based professional learning 712: 311:after the tourist season ends. The 47:adding citations to reliable sources 18: 1882:Workers' right to access the toilet 264:Political changes, for example the 13: 756: 14: 2730: 2653: 2652: 1946:Corporate collapses and scandals 404:(This actually may be a form of 23: 16:Form of involuntary unemployment 706: 677: 664: 652: 640: 629: 611: 243:moved from what are now called 186:Inability to afford relocation. 34:needs additional citations for 2446:Employment-to-population ratio 1818:Occupational health psychology 823: 599: 587: 575: 563: 551: 539: 525:10.1016/j.techfore.2016.08.019 500: 488: 470: 323:Relation to other unemployment 1: 2534:Works Progress Administration 2426:Unemployment Convention, 1919 1838:Personal protective equipment 1391:Occupational Outlook Handbook 463: 284:and cultural factors such as 2615:Psychopathy in the workplace 1788:Human factors and ergonomics 438:Natural rate of unemployment 266:collapse of the Soviet Union 7: 2600:Narcissism in the workplace 1813:Occupational exposure limit 416: 10: 2735: 2529:Civil Works Administration 2411:Technological unemployment 1887:Workplace health promotion 1344:Professional certification 1041:Personality–job fit theory 360: 239:Manufacturing jobs in the 164:Technological unemployment 161: 2648: 2547: 2509:Guaranteed minimum income 2466: 2307: 2181: 2094:Organizational commitment 2046: 1938: 1905: 1768: 1693: 1570: 1497: 1431: 1218: 1140: 1084: 934: 831: 777:Resources in your library 688:. Wharton Digital Press. 582:"Long-Term Unemployment," 193:or of the local economy). 58:"Structural unemployment" 2678:Aspects of organizations 2359:Involuntary unemployment 1920:Equal pay for equal work 1843:Repetitive strain injury 1349:Professional development 1339:Professional association 1021:Letter of recommendation 713:Ford, Martin R. (2009), 433:Involuntary unemployment 389:marginal revenue product 126:involuntary unemployment 2663:Aspects of corporations 2625:Slow movement (culture) 2504:Employer of last resort 2406:Structural unemployment 2344:Frictional unemployment 1783:Epilepsy and employment 1670:Performance-related pay 1604:National average salary 1522:996 working hour system 768:Structural unemployment 717:, Acculant Publishing, 684:Peter Cappelli (2012). 448:Post-industrial society 406:frictional unemployment 393:intellectually disabled 329:frictional unemployment 145:frictional unemployment 122:Structural unemployment 2673:Aspects of occupations 2479:Unemployment insurance 2431:Unemployment extension 2401:Reserve army of labour 2206:Constructive dismissal 2013:Sleeping while on duty 1978:Exploitation of labour 1860:Sick building syndrome 1036:Person–environment fit 906:Independent contractor 674:Accessed June 29, 2012 495:Mismatch. Unemployment 453:Reserve army of labour 423:Classical unemployment 379: 2683:Aspects of workplaces 2421:Unemployment benefits 2416:Types of unemployment 2354:Graduate unemployment 2248:Letter of resignation 1877:Workers' compensation 1870:Occupational fatality 1379:Vocational university 979:Employment counsellor 558:Production Skills Gap 458:Types of unemployment 399:Management professor 365: 343:cyclical unemployment 335:Seasonal unemployment 301:seasonal unemployment 297:cyclical unemployment 257:Free trade agreements 162:Further information: 149:cyclical unemployment 134:technological changes 2489:Job creation program 2265:Mandatory retirement 2218:Employee offboarding 2038:Workplace incivility 2033:Workplace harassment 1808:Occupational disease 1803:Occupational burnout 1718:Disability insurance 1562:Workweek and weekend 1369:Vocational education 1284:Continuing education 1122:Permanent employment 43:improve this article 2394:Recession-proof job 2389:Lists of recessions 2327:Economic depression 2275:Retirement planning 2156:Work–life interface 1993:Employee monitoring 1961:Corporate behaviour 1951:Accounting scandals 1833:Occupational stress 1823:Occupational injury 1359:Reflective practice 1354:Professional school 1076:Work-at-home scheme 996:Induction programme 974:Employment contract 954:Business networking 428:Deindustrialization 158:Causes and examples 143:, the others being 2657:See also templates 2494:Job creation index 2458:Youth unemployment 2322:Discouraged worker 2211:Wrongful dismissal 2191:At-will employment 2064:Civil conscription 2028:Workplace bullying 1915:Affirmative action 1897:Workplace wellness 1828:Occupational noise 1469:Long service leave 1329:Overspecialization 1309:Induction training 1264:Career development 484:. October 6, 2009. 290:sexual orientation 231:Carl Benedikt Frey 191:real estate bubble 2706: 2705: 2605:Post-work society 2585:Kiss up kick down 2317:Barriers to entry 2282:Severance package 2114:Human trafficking 2008:Sexual harassment 1988:Employee handbook 1907:Equal opportunity 1770:Safety and health 1760:Take-home vehicle 1374:Vocational school 1324:Lifelong learning 1299:Further education 1259:Career counseling 1254:Career assessment 1031:Overqualification 790:October 25, 2008. 786:Ganapati, Priya. 763:Library resources 748:978-0-87477-779-6 227:industrial robots 119: 118: 111: 93: 2726: 2693:Critique of work 2688:Corporate titles 2656: 2655: 2575:Evil corporation 2441:Employment rates 2364:Jobless recovery 2332:Great Depression 2292:Golden parachute 2287:Golden handshake 2084:Job satisfaction 2074:Critique of work 1892:Workplace phobia 1723:Health insurance 1680:Wage compression 1648:Progressive wage 1507:35-hour workweek 1474:No call, no show 1464:Leave of absence 1314:Knowledge 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2626: 2623: 2621: 2618: 2616: 2613: 2611: 2608: 2606: 2603: 2601: 2598: 2596: 2595:Make-work job 2593: 2591: 2588: 2586: 2583: 2581: 2578: 2576: 2573: 2571: 2568: 2566: 2563: 2561: 2558: 2556: 2553: 2552: 2550: 2546: 2542: 2541: 2535: 2532: 2530: 2527: 2525: 2522: 2520: 2517: 2515: 2514:Right to work 2512: 2510: 2507: 2505: 2502: 2500: 2499:Job guarantee 2497: 2495: 2492: 2490: 2487: 2485: 2484:Make-work job 2482: 2480: 2477: 2475: 2472: 2471: 2469: 2465: 2459: 2456: 2454: 2451: 2447: 2444: 2442: 2439: 2438: 2437: 2434: 2432: 2429: 2427: 2424: 2422: 2419: 2417: 2414: 2412: 2409: 2407: 2404: 2402: 2399: 2395: 2392: 2390: 2387: 2385: 2382: 2380: 2377: 2376: 2375: 2372: 2370: 2367: 2365: 2362: 2360: 2357: 2355: 2352: 2350: 2347: 2345: 2342: 2338: 2335: 2333: 2330: 2329: 2328: 2325: 2323: 2320: 2318: 2315: 2314: 2312: 2310: 2306: 2300: 2297: 2293: 2290: 2288: 2285: 2284: 2283: 2280: 2276: 2273: 2271: 2268: 2266: 2263: 2262: 2261: 2258: 2256: 2255:Restructuring 2253: 2249: 2246: 2245: 2244: 2241: 2239: 2236: 2234: 2233:Notice period 2231: 2229: 2226: 2224: 2221: 2219: 2216: 2212: 2209: 2207: 2204: 2202: 2199: 2198: 2197: 2194: 2192: 2189: 2188: 2186: 2184: 2180: 2174: 2171: 2167: 2164: 2162: 2159: 2158: 2157: 2154: 2152: 2149: 2145: 2142: 2140: 2139:Unfree labour 2137: 2135: 2132: 2130: 2127: 2125: 2122: 2120: 2117: 2115: 2112: 2110: 2109:Bonded labour 2107: 2106: 2105: 2102: 2100: 2097: 2095: 2092: 2090: 2087: 2085: 2082: 2080: 2077: 2075: 2072: 2070: 2067: 2065: 2062: 2060: 2057: 2055: 2052: 2051: 2049: 2045: 2039: 2036: 2034: 2031: 2029: 2026: 2024: 2023:Whistleblower 2021: 2019: 2016: 2014: 2011: 2009: 2006: 2004: 2001: 1999: 1996: 1994: 1991: 1989: 1986: 1984: 1981: 1979: 1976: 1974: 1971: 1967: 1964: 1962: 1959: 1957: 1956:Control fraud 1954: 1952: 1949: 1948: 1947: 1944: 1943: 1941: 1937: 1931: 1930:Glass ceiling 1928: 1926: 1923: 1921: 1918: 1916: 1913: 1912: 1910: 1908: 1904: 1898: 1895: 1893: 1890: 1888: 1885: 1883: 1880: 1878: 1875: 1871: 1868: 1867: 1866: 1865:Work accident 1863: 1861: 1858: 1854: 1853:United States 1851: 1850: 1849: 1846: 1844: 1841: 1839: 1836: 1834: 1831: 1829: 1826: 1824: 1821: 1819: 1816: 1814: 1811: 1809: 1806: 1804: 1801: 1799: 1796: 1794: 1791: 1789: 1786: 1784: 1781: 1779: 1776: 1775: 1773: 1771: 1767: 1761: 1758: 1754: 1753:United States 1751: 1750: 1749: 1746: 1744: 1741: 1739: 1736: 1734: 1731: 1729: 1726: 1724: 1721: 1719: 1716: 1714: 1711: 1709: 1708:Casual Friday 1706: 1704: 1701: 1700: 1698: 1696: 1692: 1686: 1683: 1681: 1678: 1676: 1673: 1671: 1668: 1666: 1665:Paid time off 1663: 1661: 1660:Overtime rate 1658: 1654: 1651: 1650: 1649: 1646: 1642: 1641:United States 1639: 1637: 1634: 1632: 1629: 1627: 1624: 1623: 1622: 1619: 1615: 1612: 1610: 1607: 1606: 1605: 1602: 1600: 1597: 1595: 1592: 1590: 1587: 1585: 1582: 1581: 1579: 1577: 1573: 1569: 1563: 1560: 1558: 1555: 1553: 1550: 1548: 1545: 1543: 1540: 1538: 1535: 1533: 1530: 1528: 1525: 1523: 1520: 1518: 1515: 1513: 1512:Four-day week 1510: 1508: 1505: 1504: 1502: 1500: 1496: 1490: 1487: 1485: 1482: 1480: 1477: 1475: 1472: 1470: 1467: 1465: 1462: 1460: 1457: 1455: 1452: 1450: 1447: 1445: 1442: 1440: 1437: 1436: 1434: 1430: 1424: 1421: 1419: 1416: 1412: 1409: 1407: 1404: 1403: 1402: 1399: 1397: 1396:Practice firm 1394: 1392: 1389: 1387: 1384: 1380: 1377: 1375: 1372: 1370: 1367: 1365: 1362: 1360: 1357: 1355: 1352: 1350: 1347: 1345: 1342: 1340: 1337: 1335: 1332: 1330: 1327: 1325: 1322: 1320: 1317: 1315: 1312: 1310: 1307: 1305: 1302: 1300: 1297: 1295: 1294:Employability 1292: 1290: 1287: 1285: 1282: 1281: 1280: 1277: 1275: 1272: 1270: 1267: 1265: 1262: 1260: 1257: 1255: 1252: 1250: 1247: 1243: 1240: 1239: 1238: 1235: 1233: 1230: 1229: 1227: 1225: 1221: 1217: 1211: 1208: 1206: 1203: 1201: 1198: 1196: 1195:Orange-collar 1193: 1191: 1188: 1186: 1183: 1181: 1178: 1176: 1173: 1171: 1168: 1166: 1163: 1161: 1158: 1156: 1153: 1151: 1148: 1147: 1145: 1143: 1142:Working class 1139: 1133: 1130: 1128: 1125: 1123: 1120: 1118: 1115: 1113: 1110: 1108: 1105: 1103: 1100: 1098: 1095: 1093: 1090: 1089: 1087: 1083: 1077: 1074: 1072: 1069: 1067: 1064: 1062: 1059: 1057: 1054: 1052: 1049: 1047: 1044: 1042: 1039: 1037: 1034: 1032: 1029: 1027: 1024: 1022: 1019: 1017: 1016:Job interview 1014: 1012: 1009: 1007: 1004: 1002: 999: 997: 994: 990: 987: 986: 985: 982: 980: 977: 975: 972: 970: 967: 965: 962: 960: 957: 955: 952: 950: 947: 945: 942: 941: 939: 937: 933: 927: 924: 922: 919: 917: 914: 912: 909: 907: 904: 900: 897: 895: 892: 890: 887: 886: 885: 882: 880: 877: 875: 872: 870: 869:Part-time job 867: 865: 862: 860: 857: 855: 854:Full-time job 852: 850: 847: 845: 842: 840: 837: 836: 834: 830: 826: 819: 814: 812: 807: 805: 800: 799: 796: 789: 785: 784: 778: 775: 774: 769: 764: 750: 744: 740: 739: 734: 730: 726: 720: 716: 711: 710: 697: 691: 687: 680: 673: 667: 660: 655: 648: 643: 637: 632: 624: 623:Bloomberg.com 620: 614: 607: 602: 595: 590: 583: 578: 571: 566: 559: 554: 547: 542: 534: 530: 526: 522: 518: 514: 510: 503: 496: 491: 483: 479: 473: 469: 459: 456: 454: 451: 449: 446: 444: 441: 439: 436: 434: 431: 429: 426: 424: 421: 420: 414: 411: 407: 402: 397: 394: 390: 384: 377: 373: 369: 358: 356: 352: 348: 344: 339: 336: 332: 330: 320: 316: 314: 310: 306: 302: 298: 293: 291: 287: 283: 279: 274: 267: 263: 258: 255: 252: 251:Globalization 249: 246: 242: 241:United States 238: 237: 235: 232: 228: 224: 220: 217: 213: 210: 207: 203: 202: 201: 195: 192: 188: 185: 182: 179: 175: 174: 173: 169: 165: 155: 152: 150: 146: 142: 137: 135: 131: 127: 124:is a form of 123: 113: 110: 102: 91: 88: 84: 81: 77: 74: 70: 67: 63: 60: â€“  59: 55: 54:Find sources: 48: 44: 38: 37: 32:This article 30: 26: 21: 20: 2719:Unemployment 2630:Toxic leader 2610:Presenteeism 2590:Labor rights 2580:Going postal 2555:Bullshit job 2538: 2523: 2518: 2405: 2309:Unemployment 2161:Downshifting 2144:Wage slavery 2124:Penal labour 2079:Dead-end job 2069:Conscription 1848:Right to sit 1703:Annual leave 1685:Working poor 1621:Minimum wage 1599:Maximum wage 1557:Working time 1547:Six-hour day 1449:Career break 1411:Professional 1205:Black-collar 1175:White-collar 1155:Green-collar 1132:Volunteering 969:Drug testing 959:Cover letter 899:Tradesperson 767: 736: 714: 707:Bibliography 685: 679: 666: 654: 642: 631: 625:. July 2016. 622: 613: 601: 589: 577: 565: 553: 541: 516: 512: 502: 490: 481: 472: 398: 385: 381: 371: 367: 340: 338:techniques. 333: 326: 317: 309:resort towns 305:farm workers 294: 280:, including 275: 271: 212:Productivity 206:obsolescence 199: 178:job training 171: 153: 138: 129: 121: 120: 105: 96: 86: 79: 72: 65: 53: 41:Please help 36:verification 33: 2519:Historical: 2243:Resignation 2183:Termination 2166:Slow living 2134:Truck wages 2119:Labour camp 2047:Willingness 1939:Infractions 1594:Living wage 1542:Remote work 1210:Gold-collar 1165:Pink-collar 1160:Grey-collar 1150:Blue-collar 1117:Labour hire 1092:Cooperative 1056:Recruitment 1011:Job hunting 944:Application 926:Wage labour 911:Labour hire 864:Job sharing 519:: 254–280. 2453:Wage curve 2260:Retirement 2173:Workaholic 2151:Work ethic 2018:Wage theft 2003:Labour law 1998:Evaluation 1983:Dress code 1748:Sick leave 1713:Child care 1675:Salary cap 1589:Income tax 1552:Shift work 1489:Time clock 1484:Sick leave 1479:Sabbatical 1444:Break room 1432:Attendance 1401:Profession 1386:Mentorship 1364:Retraining 1289:E-learning 1185:New-collar 1180:Red-collar 1127:Supervisor 1107:Internship 1026:Onboarding 894:Technician 889:Journeyman 859:Gig worker 825:Employment 464:References 355:hysteresis 223:mechanized 141:economists 130:skills gap 99:March 2010 69:newspapers 2640:Workhouse 2560:Busy work 2374:Recession 2238:Pink slip 2196:Dismissal 2059:Careerism 1653:Singapore 1631:Hong Kong 1499:Schedules 1418:Tradesman 1319:Licensure 1279:Education 1249:Avocation 1190:No-collar 1170:Precariat 1051:Probation 1006:Job fraud 533:0040-1625 245:Rust Belt 2713:Category 2548:See also 2474:Workfare 2299:Turnover 1695:Benefits 1576:salaries 1537:Overtime 1527:Flextime 1459:Gap year 1454:Furlough 1423:Vocation 1406:Operator 1269:Coaching 1224:training 1102:Employer 1097:Employee 1001:Job fair 879:Side job 735:(1995), 417:See also 2524:U.S.A.: 2129:Peonage 2104:Slavery 2054:Boreout 1793:Karoshi 1743:Pension 1532:On-call 1237:Artisan 921:Laborer 482:Reuters 361:Debates 351:poverty 282:ableism 83:scholar 2228:Layoff 1778:Crunch 1636:Europe 1626:Canada 1614:Europe 1220:Career 1061:RĂ©sumĂ© 936:Hiring 844:Casual 765:about 745:  721:  692:  531:  376:Madrid 216:demand 85:  78:  71:  64:  56:  2089:McJob 1609:World 1572:Wages 1439:Break 1085:Roles 90:JSTOR 76:books 1574:and 1222:and 989:list 743:ISBN 719:ISBN 690:ISBN 529:ISSN 286:race 166:and 147:and 62:news 1112:Job 521:doi 517:114 357:." 349:of 288:or 45:by 2715:: 621:. 527:. 515:. 511:. 480:. 370:— 292:. 151:. 817:e 810:t 803:v 751:. 727:. 698:. 535:. 523:: 268:. 218:. 180:. 112:) 106:( 101:) 97:( 87:· 80:· 73:· 66:· 39:.

Index


verification
improve this article
adding citations to reliable sources
"Structural unemployment"
news
newspapers
books
scholar
JSTOR
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involuntary unemployment
technological changes
economists
frictional unemployment
cyclical unemployment
Technological unemployment
Productivity improving technologies (economic history)
job training
real estate bubble
obsolescence
Productivity
demand
mechanized
industrial robots
Carl Benedikt Frey
United States
Rust Belt
Globalization
Free trade agreements

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