3. A politician makes the following argument: The economy would operate more efficiently if structural unemployment is completely eliminated. Therefore, a goal of government policy would be to reduce the structural UNR to the lowest level. Briefly explain whether or not you agree with the argument.

Agree with the statement.

Explanation:

Structural unemployment refers to the mismatch of the abilities of the workforce of the economy with the changing ability requirements demanded by the industries in the economy.

This mainly happens because of the new technological innovations and the obsolete education system in a country. One a new technology or a new innovation comes in, the knowledge and the experience possessed by the workers become obsolete.

To eliminate the structural unemployment, the education system, higher education system, professional education system and national employee training and development policies has to be changed and updated accordingly with the changing global market skills demand.