JAMB 2023 Economics · Question 34

The type of unemployment that occurs when an individual cannot find job as a result of obsolete skill is

Options

  1. A.Structural unemployment
  2. B.Cyclical unemployment
  3. C.Seasonal unemployment
  4. D.Frictional unemployment

Answer: A. Structural unemployment

Explanation written with AI and checked against the answer key

Step 1: Analyze the question The question asks for the type of unemployment that happens when a person cannot get a job because their skills are obsolete (outdated and no longer needed by employers).

Step 2: Review the types of unemployment

  • Structural unemployment: Occurs when there is a mismatch between the skills workers have and the skills employers need. It is usually caused by technological change, changes in the structure of the economy, or the decline of certain industries.
  • Cyclical unemployment: Caused by a downturn in the business cycle (recession or depression), when overall demand for goods and labour falls.
  • Seasonal unemployment: Happens at certain times of the year when work is not available, such as farm workers in the off-season.
  • Frictional unemployment: Short-term unemployment while people move between jobs or search for a new one. The skills are still useful, and the person is just in transition.

Step 3: Apply to the question Obsolete skills mean the worker's abilities no longer match what the labour market demands. For example, a typewriter operator in an age of computers, or a film-reel technician when digital technology takes over. This skills mismatch is the defining feature of structural unemployment.

The other options do not fit:

  • It is not tied to a recession (B).
  • It is not tied to the time of year (C).
  • It is not a short job-search gap (D).

Step 4: Answer The correct option is A. Structural unemployment.

Exam tip: Link keywords to types:

  • Obsolete skills / technology / mismatch → Structural
  • Recession / low demand → Cyclical
  • Time of year → Seasonal
  • Between jobs / job searching → Frictional

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