DECA+ Business Management and Administration Practice Exam

What is the common consequence of structural unemployment?

1. Increased worker hiring

2. Technological skills mismatches

3. Higher wages for specialized workers

4. Decrease in job openings

The correct answer is: Technological skills mismatches

The correct answer is that a common consequence of structural unemployment is technological skills mismatches. This form of unemployment occurs when there is a fundamental shift in the economy that results in a lack of demand for certain types of jobs or skills, often influenced by advancements in technology, globalization, or changes in consumer preferences. As industries evolve, the skills required by employers often change, leading to a scenario where some workers possess skills that are no longer in demand, while others may be in high demand but are not met by the existing workforce. This mismatch can create prolonged periods of unemployment for those whose skills have become obsolete, thereby highlighting the impact of structural changes within the job market. The other choices don't effectively capture the essence of structural unemployment. Increased worker hiring is generally associated with a healthy labor market, which contrasts with the persistent unemployment seen in structural scenarios. Higher wages for specialized workers may occur in specific sectors, but it does not address the broader issue of unemployment caused by skill mismatches. A decrease in job openings may happen as a result of economic downturns but does not directly relate to the misalignment of skills between workers and job requirements that defines structural unemployment.