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O Levels Economics (2281)•2281/11/M/J/20
Question 20 from 2281/11/M/J/20

Explanation

Structural unemployment matches 2018 table patterns

Steps:

  • Review table data for 2018 unemployment rates by industry or region.
  • Identify mismatches between worker skills and available jobs, such as declining sectors like manufacturing.
  • Rule out short-term or economic cycle factors based on stable GDP.
  • Confirm persistent trends aligning with structural definitions.

Why D is correct:

  • Structural unemployment arises from skill or location mismatches preventing workers from finding jobs, as evidenced by the table's 2018 industry-specific declines.

Why the others are wrong:

  • A. Cyclical ties to business cycle recessions; 2018 table shows steady growth, not downturns.
  • B. Frictional involves temporary job searches; table indicates prolonged, not transitional, unemployment.
  • C. Seasonal fluctuates with weather or holidays; 2018 data lacks such periodic variations.

Final answer: D

Topic: Employment and unemployment

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