Structural unemployment what causes structural unemployment

Structural unemployment is structural unemployment causes, features, examples, concept, economic difference, relationship with economic globalization, automation in industries one of the causes of structural unemployment, one generated by the introduction of new technologies or systems and processes to reduce costs.

These new elements affect the economy of a country (industry, trade and services), causing the isolation, usually in large quantities.


The main causes of structural unemployment (examples):

Deploy robots industrial production.

Installation of ATMs in branches.

Computer use in governmental institutions and agencies, aims to reduce bureaucracy.

Use of the Internet for online shopping and banking.

Adoption of efficient administrative processes at institutions, aiming to improve and reduce the workforce.

The introduction of new technologies, aimed at replacing human labor with computers and automated machines.

Differences between structural and cyclical unemployment

While it is structural unemployment caused by the adoption of new technologies and processes, the Economic Outlook generates internal or external economic crises. Economic crises usually low consumption, exports and production, and the result of all this, raise unemployment.

When the economy recovers, after periodic unemployment crisis tends to decrease. In the case of structural unemployment, is no longer taken up vacancies closed in those jobs.

Structural unemployment and globalization

The globalization of the economy, which gained strength from the late 1970 ‘s, was heavily involved in the increase of structural unemployment in the world. Economic globalization to increase competitiveness in the international arena, primarily through foreign trade, making companies look for ways to reduce the cost of production, marketing and transportation. Among these models, are the main causes of structural unemployment: adoption of new technologies and management systems and cost effective production (both with low labour).

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