Unemployment arising due to a mismatch between Job availability in the market and skills of available worker is called?

Correct option is B

The correct answer is (b) Structural.

Structural unemployment occurs when there is a mismatch between the skills that workers in the labor market possess and the skills required for the available jobs. This type of unemployment often results from technological advancements, changes in consumer preferences, or shifts in the economy that render certain skills obsolete. For instance, if automation reduces the need for certain manual jobs, workers previously employed in those jobs may find it difficult to secure new employment without acquiring new skills.

Information Booster:

● Structural unemployment is a long-term type of unemployment due to fundamental changes in the economy or industry.
● It often requires workers to undergo retraining or reskilling to meet the new demands of the job market.
● Common causes include advancements in technology, such as automation, or shifts towards service-oriented economies.
● Structural unemployment can lead to persistent unemployment in certain sectors or regions, even when jobs are available in other areas.
● Governments often address structural unemployment through vocational training, educational programs, and initiatives to help workers acquire skills in demand.
● Unlike frictional unemployment, which is temporary, structural unemployment can last for extended periods unless proactive measures are taken.