Frictional Unemployment and Structural Unemployment.

Question

Distinguish Between:

Frictional Unemployment and Structural Unemployment.

Answer 1

Frictional Unemployment	Structural Unemployment
(i) It takes place when due to the frictions in the industry, some workers are removed from jobs.	(i) It takes place due to the structural changes in the economic organizations.
(ii) It is the result of a shortage of raw materials, strikes, power failure, etc.	(ii) It is the result of a change in the production process, shifting the industry from one region to another, technological changes, etc.
(iii) It is temporary unemployment.	(iii) It may be longterm unemployment.
(iv) It is seen in all countries.	(iv) It is normally seen in underdeveloped countries.
(v) It can be removed by improvement in the supply of inputs, good labor- employer relations, etc.	(v) It can be removed by way of long-term planning, creation of alternative jobs, etc.