Home > Term: structural unemployment
structural unemployment
The hardest sort of unemployment to cure because it is caused by the structure of an economy rather than by changes in the economic cycle. Contrast with cyclical unemployment, which can, in theory if not always in practice, be cut without sparking inflation by stimulating faster economic growth. Structural unemployment can be reduced only by changing the economic structures causing it, for instance, by removing rules that limit labor market flexibility.
- Part of Speech: noun
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
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- summer.l
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