5. Structural unemployment is:
a. obsolete skills
b. equal to cyclical unemployment minus frictional unemployment
c. related to job search
e. non existent
The correct answer is "a".
As jobs become obsolete, workers either leave the workforce or enter into unemployment. It is my opinion that more and more jobs will become obsolete as technology replaces labor. For example, Rosetta Stone will replace World Language teachers. Technology should create new jobs to replace the ones destroyed, but it is my opinion that technology is changing faster than the skills needed to compete in a techno world are increasing. Thus, I see an increase in the natural rate of unemployment.
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