- Causes:
- Workers lacking requisite job skills.
- Change in government policy.
- Change in technology.
- Workers living far from available jobs and unable/unwilling to move.
- Existing wage levels being too low.
- Mismatch between company needs and worker skills.
- Consequences:
- Longer lasting form of unemployment.
- Jobs are available, but people are not qualified to fill them.
- Can lead to a persistent pool of unemployed individuals.
- Hinders economic growth by not fully utilizing labor force.