Multiple choice

Structural unemployment results due to

  1. a change caused by the introduction of new machines, labour saving devices and improvement in methods of production

  2. a change caused by recessionary and depressionary phases of the economy

  3. a change caused by high population growth, primitive state of technology, low capital formation and vicious circle of poverty etc.

  4. a change caused by a decline in demand for production in a particular industry and consequent disinvestments and reduction in its manpower requirement
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Structural unemployment occurs from fundamental shifts in the economy causing long-term job losses in specific industries. Option D describes this: declining demand in a particular industry leads to disinvestment and reduced workforce. Options A, B, and C describe technological, cyclical, and chronic unemployment respectively.

Keep practicing — related questions