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5 November, 08:35

Unions contribute to a. cyclical unemployment. b. frictional unemployment. c. structural unemployment. d. seasonal unemployment.

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  1. 5 November, 10:27
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    The correct answer is d. c. structural unemployment.

    Explanation:

    Structural unemployment is due to the fact that the number of existing jobs is insufficient to give employment to everyone who wants a worker (active population).

    When a union raises wages above the equilibrium level, it increases the supply of employment and reduces demand. This generates unemployment.

    • Internal workers benefit from high salaries earned in negotiation collective

    • External workers have difficulties in find a job or have to accept a job in a non-union company.
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