Which of the following is an example of structural unemployment?

• A. A retail worker is laid off because overall spending falls during a recession.
• B. A recent college graduate is temporarily unemployed while searching for their first job that matches their preferences.
• C. A coal miner loses their job because the mine closes permanently due to automation and the worker’s skills do not match available jobs in the local economy.
• D. A construction worker is unemployed during the winter when building projects slow down.

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the definition of structural unemployment. Structural unemployment occurs when there is a mismatch between workers' skills and the skills needed for available jobs, often due to technological changes or shifts in the economy.
2. Step 2: Analyze each option to see if the unemployment described is due to a temporary or cyclical factor, or due to a fundamental change in the structure of the economy.
3. Step 3: Identify that a retail worker laid off during a recession is an example of cyclical unemployment, caused by a downturn in overall demand.
4. Step 4: Recognize that a recent college graduate searching for their first job is experiencing frictional unemployment, which is short-term and related to job search and matching.
5. Step 5: Note that a coal miner losing a job because the mine closes permanently due to automation, and whose skills do not match other available jobs, is a classic example of structural unemployment.