structural unemployment vs cyclical unemployment

These two phrases, 'structural unemployment' and 'cyclical unemployment,' are related but refer to different types of unemployment. 'Structural unemployment' occurs when there is a mismatch between the skills of the workforce and the requirements of the job market, leading to long-term unemployment. On the other hand, 'cyclical unemployment' is related to fluctuations in the business cycle, where unemployment rises during economic downturns and falls during periods of economic growth. They are not interchangeable and are used in specific economic contexts.

Last updated: March 24, 2024 • 898 views

structural unemployment

This phrase is correct and commonly used in economics to describe a type of unemployment caused by structural changes in the economy.

This term is used in economics to refer to unemployment resulting from a mismatch between the skills of the workforce and the demands of the job market. It is a long-term form of unemployment.

Examples:

Structural unemployment can be addressed through retraining programs and education initiatives.

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This is expected to cause future long-term structural unemployment.
One scary conclusion you could draw from all of this is to worry about structural unemployment.
Guideline 7: Increasing labour market participation and reducing structural unemployment
Increasing labour market participation and reducing structural unemployment
Such firms are mainly to be found in regions suffering from structural unemployment.
This path will accentuate the existing economic, social, regional and national divisions and disparities, and foment structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment, constraints in credit availability and increasing structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment, constraints in credit availability and increasing structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment and increasing structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment, constraints in credit availability and increasing structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment, constraints in credit availability and increasing structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment, constraints in credit availability and increasing structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment and possibly increasing structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment, constraints in credit availability and increasing structural unemployment.
In addition, the crisis may also affect potential growth in the medium term through lower investment, constraints in credit availability and increasing structural unemployment.
However, there are some signs that the level of structural unemployment has declined somewhat in recent years.
Labour market policies which reduce structural unemployment and increase labour force participation are, therefore, important complements to pension reform.
In labour markets, moderate wage-setting in several economies and sufficient labour market flexibility are required in order to avoid higher structural unemployment over the coming years.
In labour markets, sufficient wage flexibility and a reinforcement of incentives to work are required in order to avoid higher structural unemployment over the coming years.
Our analyses prove that structural unemployment is also falling, which is fairly encouraging for Europe in the medium and long term.

Alternatives:

long-term unemployment
skills gap in the job market
labor market mismatch
structural changes in the economy

cyclical unemployment

This phrase is correct and commonly used in economics to describe a type of unemployment that fluctuates with the business cycle.

This term is used in economics to describe unemployment that rises during economic downturns and falls during periods of economic growth. It is directly related to the business cycle.

Examples:

Cyclical unemployment tends to increase during recessions and decrease during economic expansions.

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There will always be some cyclical unemployment, with workers looking to change jobs, young people entering the labour market.
On top of that there is also cyclical unemployment.
The recent sharp fall in unemployment can be mainly accounted for by cyclical factors.
In this context, we can debate whether unemployment is structural or cyclical.
This cyclical downturn is expected to result in an increase in unemployment - the first since 1997 - which is unlikely to fall again until 2003.
Overall, lower unemployment reflects employment growth associated with cyclical conditions as well as the impact of market reforms and continued wage moderation.
With the exception of unemployment-related outlays, most government expenditure is pre-committed in annual budgets and is broadly unaffected by cyclical fluctuations.
As many speakers have already pointed out, Europe's main problem is high unemployment - structural as well as cyclical.
This measure prevented that pro-cyclical budget cuts had to be made as a result of increasing unemployment and led to a strengthening of automatic stabilisers (by about 0,3 % of GDP in 2009).
They could also enhance the adjustment processes in the individual countries in the event of region or country-specific shocks or differing cyclical developments, thereby avoiding too high levels of regional unemployment.
In addition to the high unemployment rates for single mothers, the cyclical nature of poverty strongly affects the dependent children of single mothers.
There is widespread evidence that the level of structural unemployment has continued to rise in recent years, implying that the cyclical upswing will only be able to resolve a part of the unemployment problem.
The negative pro-cyclical effects of capital requirements on loans and therefore also on investment by industry and households will be felt when - according to current forecasts - the slight upturn stabilises but unemployment rates rise as a result of the crisis.
Urges the Member States to address, through labour-market-related policy measures, both the cyclical and the long-term dimensions of unemployment;
E. whereas the EU's unemployment problem, rather than being cyclical, is more complex and structural in nature, and has been aggravated by the downturn in growth,
having regard to the abnormally high level of unemployment in Europe, in particular among young people, women and the long-term unemployed, and the fact that it is structural rather than cyclical,
whereas the EU's unemployment problem, rather than being cyclical, is more complex and structural in nature, and has been aggravated by the downturn in growth,

Alternatives:

business cycle unemployment
economic cycle unemployment
fluctuating unemployment

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structural unemployment vs cyclical unemployment