... this transition is far from smooth and their will always be some short term unemployment, e.g. due to immobility of labour. Structural unemployment is unemployment which rises because of changes in the structure of the economy. In a dynamic economy there will always be industries that are expanding and declining as a consequence of structural decline. There are three areas of structural unemployment: the industries in structural decline may be regionally concentrated resulting in regional unemployment, technological unemployment may arise due to a change in the structure of a particular industry as it accepts new technology e.g. the financial sector, finally, sectoral unemployment is when one industry collapses leaving skilled workers unemployed, e.g. the shipbuilding trade. Some industries, because of their nature are highly seasonal and companies in this sector may well only employ people in season, an example is the tourist industry, employment will peak in the summer months and fall ...

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