Structural shifts in economy drive cyclical unemployment, impacting job seekers.
Cyclical unemployment is partly due to shifts in job demand between different industries, leading to the need for workers to find new jobs. The 1970s saw more unemployment caused by these shifts compared to the 1960s. By analyzing layoffs and unemployment data, researchers found that most unemployment fluctuations in the 1970s were due to structural changes in the U.S. economy. This suggests that some unemployment is unavoidable as the economy changes over time.