What is a characteristic of structural unemployment?

Structural unemployment occurs when there is a mismatch between the skills that workers possess and the skills that are required by employers in the labor market. This can happen due to various factors, such as technological advancements, shifts in consumer preferences, or changes in the economy that lead to certain industries declining while others grow.

When workers do not have the necessary skills or training to transition into the growing sectors, they find themselves unable to secure employment, causing structural unemployment. This type of unemployment is often longer-term than other forms, such as cyclical unemployment, as it may require workers to gain new skills or relocate to find work.

The other characteristics mentioned relate to different forms of unemployment; for instance, reduced demand during a recession typically leads to cyclical unemployment, while temporary job transitions pertain to frictional unemployment. Wage floors, such as minimum wage laws, can also contribute to unemployment in a different way but are not defining elements of structural unemployment.