What is a primary consequence of structural unemployment?

A primary consequence of structural unemployment is a mismatch between skills and job requirements. Structural unemployment occurs when there is a fundamental change in the economy that affects the demand for certain skills or professions. This can arise from technological advancements, changes in consumer preferences, or globalization, which may render certain skill sets obsolete while increasing demand for others.

As a result, individuals may find themselves without the necessary qualifications or experience to fill available positions in the labor market. This mismatch leads to prolonged unemployment for those whose skills do not align with current job requirements, creating a significant disconnect between job seekers and employment opportunities. Thus, addressing this type of unemployment often requires investment in retraining and education to help workers acquire the necessary skills for new jobs or industries.