Question
Define frictional and structural unemployment.

Answer

Frictional unemployment: It is the unemployment associated with the changing of jobs in dynamic economy. It arises due to immobility of labour, shortage of raw material, lack of information regarding opportunities of employment, etc.
Structural unemployment: It is the unemployment that results from the long-term decline of certain industries. It is associated with the structural changes in the economy. It arises due to shortage of capital, land, trained labour and updated technique.

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