What it is:
How it works/Example:
Structurally market or have a specialized background or experience that cannot be used in the current market. It is usually the result of a change in the economic situation of an industry or region, often a natural disaster or the introduction of a new competitor or market.
Natural disasters, such as hurricanes, have wiped out entire industries in geographic regions leaving the workforce structurally .
Why it matters:
Structural unemployment is often considered permanent as it is difficult for many workers to learn a new skill set or move to an area where such skills are still in demand. Government policies and programs can be put in place to prevent such unemployment sometimes; however, stimulus-driven policies (i.e. activities to increase the level of business activity) do not typically eliminate or lessen structural unemployment â the market simply can't utilize the skills anymore.
Structural unemployment is the most common form of unemployment.
Removing such jobs from the market means that new jobs needing different skills are opening up.
Other categories of unemployed recognized by economists include cyclical and frictional unemployment.