Tag Archives: Structural vs. Cyclical unemployment

Structural or Cyclical?

Some argue that the unemployed have skills that are simply not needed. Thus, deficit spending will not get us out of this “structural” recession. But, if this were a “structural” problem, the unemployment rate for recent college grads would be relatively lower now than back in ’01; as that was a classical cyclical recession. But it’s not. Recent college grads today are relatively as bad off as they were then.