Certified Supply Chain Professional (CSCP) Practice Exam

Structural unemployment arises due to what primary factor?

1. Seasonal changes in work

2. Normal transitions between jobs

3. Changes in the available work structure

4. Government policy changes

The correct answer is: Changes in the available work structure

Structural unemployment primarily arises due to changes in the structure of the economy that affect the demand for certain skills and jobs. When economic shifts occur, such as advancements in technology, changes in consumer preferences, or globalization, specific industries may decline while others may grow. This transformation often leaves workers with skills that are no longer in demand—resulting in a mismatch between the skills of the labor force and the skills needed for available jobs. For instance, if a factory automates its production processes, the demand for manual labor may decrease, leading to structural unemployment among workers who do not possess the necessary technical skills to operate and maintain the new machinery. This type of unemployment is not related to short-term fluctuations in the economy (like seasonal or cyclical unemployment) or the normal transitions that workers make between jobs. Rather, it reflects fundamental shifts that require workers to either retrain or relocate to find suitable employment, which can be a longer-term challenge. The other options, while valid forms of unemployment, do not capture the essence of what structural unemployment entails. Seasonal changes in work are cyclical and predictable, normal job transitions happen naturally in the labor market, and while government policy changes can influence employment, they don't directly relate to the fundamental economic shifts that define structural unemployment