Question

The government has decided to give governmental grants to community colleges that offer job training for individuals who have recently been laid off due to their outmoded skills. The government is trying to reduce the level of: Choose one:A. structural unemployment.B. cyclical unemployment.C. frictional unemployment.D. real GDP.E. household consumption.

Answer 1

Answer:

A. Structural unemployment is the correct answer.

Explanation:

The mismatch between the available jobs and the skill levels of the unemployed people is known as structural unemployment. It is caused when there is  a shift in the economy and it becomes difficult for other groups to get jobs. It is not easy to correct. If it is ignored for too long  then it will increase the natural employment rate and can keep the unemployment rate high after a recession.

In this case also the college is offering job training to the student who skills are not useful anymore and it is offering job training to them hence it is the case of skill mismatch.