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Define the term 'structural unemployment' and outline one policy response that the Irish Government could take to reduce it - Leaving Cert Economics - Question 3 - 2014
Question 3
Define the term 'structural unemployment' and outline one policy response that the Irish Government could take to reduce it. Definition: Government Policy:
Worked Solution & Example Answer:Define the term 'structural unemployment' and outline one policy response that the Irish Government could take to reduce it - Leaving Cert Economics - Question 3 - 2014
Step 1
Definition:
Answer
Structural unemployment refers to a form of long-term unemployment that arises from a fundamental shift in the economy or industry. This shift may be driven by changes in consumer demand or advancements in technology that render certain skills obsolete. For example, as industries evolve, some jobs may disappear while new jobs requiring different skills emerge, leading to a mismatch between available jobs and the skills of the unemployed.
Step 2
Government Policy:
Answer
One effective policy response the Irish Government could implement to tackle structural unemployment is the introduction of a retraining scheme. This program would focus on upskilling long-term unemployed workers, enabling them to acquire the necessary skills for available jobs in the current market. For instance, the government could collaborate with industry partners to provide courses and training that align with labor market needs, thus facilitating a smoother transition for these individuals back into the workforce.