Monday , 17 June 2024

What Does 'Structural' Unemployment Mean? What Does It Mean for Future Economic Growth ?

It is important when your read articles on Job Reports that you understand what Structural Unemployment is, and what it means to economic growth. [This short article will attempt to do just that.] Words: 432

So says Ian R. Campbell ( in edited excerpts from his synopsis and review (a component of a subscription service but presented here with his kind permission for posting on – Your Key to Making Money!) of an article* by Joe Duarte on the subject. This paragraph must be included in any article re-posting to avoid copyright infringement.

Campbell goes on to say, in part:


In Duarte’s article on the April 6 U.S. Jobs Report in the context of structural unemployment he concludes that:

  • the foundation of the U.S. economy is no longer what it once was;
  • structural unemployment issues were at the center of the disappointing April 6 U.S. jobs report;
  • things won’t improve until “the structural problems, education, job repatriation, innovation, and responsible long term policies in energy, manufacturing, tax structure and fiscal responsibility are addressed in a sensible, flexible, and responsible fashion”;
  • this leaves the U.S. population in an increasingly volatile and dangerous environment both as investors and as citizens.

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My Comments

 …Simplistically, structural unemployment exists where:

  • the job skills of available workers do not match the job requirements of employers; or,
  • available workers with jobs skills required by employers who want to hire are not physically located in close enough proximity to the employer’s geographic location or where, for example,
  • a mid-level manager making $70,000 per year loses his/her job is unable to find another job either because of age, skill level, location, etc. and refuses to accept the reality that he/she has to take a job considered ‘beneath ones skills’ or demeaning in some way. That unemployed person then postpones their job search until reality and desperation kick in. By then they are older, in an environment that makes it ever harder to find a job.

Structural unemployment is particularly difficult to deal with because of the elapsed time necessary to train workers in new skills, or to relocate workers at substantive cost. ‘Sort of’ structural unemployment exacerbates the problem.

I am unaware of any study that quantifies the extent of U.S. structural unemployment [and that is unfortunate as] it is a big deal and likely…[going] to become a Bigger Deal.


Read Durate’s article* The Jobs Report: What Structural Really Means, and this commentary closely, and carefully reflect on what structural unemployment means to U.S. economic recovery and future U.S. Jobs Reports.

*  (To access the article please copy the URL and paste it into your browser.)

Editor’s Note: The above article has been has edited ([ ]), abridged (…), and reformatted (including the title, some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.

Another Comment by Campbell on Duarte Article:

1. Ian Campbell Comments on the World vs. Market Reality Disconnect & the “Nerds on Wall Street”


The world is on the verge of becoming a cauldron of Disorder [y]et the market is orderly for now and people refuse to fully acknowledge it. This inability to compartmentalize the “world reality” from the “market reality” is costing investors money. The world isn’t likely to end well in the not too distant future but for now the market is doing just fine. Words: 610

Other Comments/Critiques by Ian Campbell:

1. Campbell: Balanced Opinions Regarding Gold & Silver are Paramount – Here’s Why


If you hold, or are considering holding, physical gold or silver or both, [it is imperative that you] read as many ‘balanced opinions’ as you possibly can with respect to ownership of each. [Here’s why]. Words: 337

2. Campbell’s Critique of Meredith Whitney’s Municipal Default Claims


Meredith Whitney has resurfaced on the subject of U.S. Municipal defaults stating that a “tidal wave” of defaults in the municipal bond market is still building and will eventually hit the United States [although her views are at odds with those of] Moody’s Investors Service [who only see] a small but growing number of defaults. [Here is a critique of her latest views.]

3. Campbell’s Critiques on Fiat Currency, Washington Gridlock, Business Journalism and Career Choices


Hundreds of articles are posted every week but their content is almost never challeged. Campbell does just that. He conveys his comments, concerns and criticisms in a concise conversation, concluding his critiques with either his concurrence or contrary point of view. He invariably ends each critique with a question or two for you to mull over until his next insightful and thought-provoking commentaries. Put your thinking cap on and give them a read. Words: 1722

4. Campbell’s Challenge: ‘Think for Yourself’ When Reading This Article on Gold!


It doesn’t take a rocket scientist to figure out that the technical picture for gold has been rapidly deteriorating…and a look at the longer term charts makes it clear that we have just witnessed a head and shoulders formation that has dramatically failed. The chip shot on the downside for gold here is $1,500 [maybe even] $1,450. Bring a double dip scare for the economy into the picture, which I expect to see this summer, and $1,100 is a possibility. If you get a real stock market crash in 2013, as many analysts are predicting, and you’ll get another chance to buy at $750. [That being said,] long term, I still like gold and expect it to hit the old inflation adjusted high of $2,300 during the next hard asset buying binge – but remember also that long term, we are all dead. Words: 900

5. Is Gold the Ultimate Inflation Fighter It Is Claimed to Be?

golden dollar

Below is a synopsis of, and comments on, a very well balanced article on physical gold which is rather rare in this day and age. The article challenges everyone who owns gold, or is considering owning gold, to think for themselves, and then come to their own conclusions as to whether physical gold is, indeed, the ultimate inflation hedge that it is so often claimed to be. Words: 800

6. Campbell’s Critique: Some Gold Prognostications are Well Based, Some Much Less So – Here’s a Comparison


When forecasting, many economists and commentators fail to focus on the dramatic change in inter-country dependence in our ever more globalized world…and fail to let the actual markets influence their views. Below I critique two articles, rationalizing what they see for the price of gold for the balance of 2012. Words: 730

7. Which Countries are Most Risky for Mining/Oil and Gas Companies? Here’s the List


The Behre Dolbear Group has recently published its annual comparative country risk assessment of twenty-five countries that host the global mining industry. [If you own, or are thinking of buying, stocks of companies in this sector print, then I suggest you give the Report your full attention and pass this commentary on to friends, acquaintances and colleagues interested in the Resource Sector, and to your Investment Advisor. Words: 437

8. Ian Campbell Comments On: Silver, Algorithms, and The Bible!


Why Read This: An understanding of computer trading and its implications is important. This commentary will give you quick insight into it. Words: 421

9. China’s Doubling of the Yuan’s Trading Band Seen As Very Significant – Here’s Why


The Chinese central bank’s doubling of the trading band on the Yuan/U.S.$ exchange rate to 1.0% as of today has been greeted by general enthusiasm and is seen as a very significant move on China’s part for a number of reasons. Let me explain. Words: 772