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Principles of Macroeconomics / Unit 5   MAC 0416 short lesson, about 20 seconds

Structural Unemployment

Captions available

The idea

Structural unemployment comes from a mismatch: the skills employers want are not the skills workers have, or the jobs are not where the workers are.

In practice

A technology can make one set of skills obsolete while creating demand for another.

Where people slip

Retraining and education are the usual remedies, and they work slowly, which is why structural unemployment outlasts a recovery.

Your place on the trail

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