If unemployment continues for long-term in a country, it is called ______ unemployment.

The correct answer is Chronic.

Key Points

• Chronic Unemployment:
  • Chronic unemployment refers to long-term unemployment typically caused by structural problems in the economy.
  • It is not due to the usual ups and downs of the business cycle but rather persists even in good economic times.
  • Those who suffer from chronic unemployment lack the skills or education needed for new jobs or live in parts of the country where jobs are scarce.
  • This type of unemployment can lead to a vicious cycle of joblessness, poverty, and social issues.
  • It requires concerted policy efforts to resolve, such as retraining programs, education reform, and economic development initiatives.

Additional Information

• Casual Unemployment:
  • This refers to temporary unemployment which occurs when workers are laid off or lose their jobs due to seasonal changes in demand or supply in certain industries.
• Technological Unemployment:
  • This type of unemployment is caused by technological changes or automation that render certain jobs obsolete.
  • Workers displaced by technology need to acquire new skills to find employment in other sectors.
• Frictional Unemployment:
  • This is a type of short-term unemployment that occurs when people are between jobs or are looking for their first job.
  • It's a natural part of the job market as people move between roles and careers.