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The second form of unemployment is structural unemployment. Structural unemployment arises from an imbalance between the kinds of workers wanted by employers and the kinds of workers looking for jobs. The imbalances may be caused by inadequacy of skills, location, or personal characteristics.5 Technological developments necessitate new skills in many industries, leaving those workers who have outdated skills without a job...
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A plant in a declining industry may close down or move to another area, throwing out of work those employees who are unable to unwilling to move. Workers with inadequate education or training and young workers with little or no experience may be unable to get jobs because employers believe that these employees would not produce enough to be worth paying the legal minimum wage or the rate agreed upon with the union...
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