Blog: Eco401 GDB No. 2 solution

Total Marks 2 

Starting Date Friday, January 28, 2011 

Closing Date Tuesday, February 01, 2011 

Status Open

Question/Description

Unemployment is an economic problem as well as a social issue. It affects the living of all the people in a society whether they are young or old, educated or uneducated, skilled or unskilled. The job of “network administrator” at Virtual University of Pakistan requires special computer skills and applications are invited to fill this position. But a lot of unemployed persons who are looking for work these days don’t have these particular skills. 

With reference to the above scenario, which type of unemployment these unemployed persons are facing?

Note: Your answer must not exceed from 25 words.
.................
SOLUTION:


Mostly these people are facing the problem of lf and aj type of unemployment because the post on which the higher educated persons can not apply anl skills persons can not be given a job
................

The un-employed persons mentioned in the scenario are facing 'Structural Unemployment' because there clearly seems a mismatch between skill level of these persons with the skill level required by Virtual University for the post of Network Administrator. The reason of this mismatch is inability of these unemployed persons to change their skill level.
 

Reference: ECO401 Handouts Page 143 as follows:

Structural unemployment:

Structural unemployment is caused by a mismatch between the location of jobs and the location of job-seekers. "Location" may be geographical, or in terms of skills. The mismatch comes because unemployed are unwilling or unable to change geography or skills.