This could mean a loss in industry knowledge, technical ability, education due to advancements, and just the operational requirements of certain industries and occupations. This can allow hysteresis to occur, meaning those who are only unemployed in the short term, or due to the level of economic activity can easily turn into long-term structural unemployment, due to the loss of skill. This is the process of hysteresis, which is the economic concept that states that unemployment in the current period of time, results in future unemployment as people lose their skills, ability and knowledge (Dixon and O’Mahony, 2015). This can also affect new entrants into the labour force, such as university graduates. If aggregate demand in the economy is low, then demand in the labour market would be low as it is a derived demand. Therefore, hysteresis would again occur as those new entrants would not be able to break into into the workforce and develop the skills necessary to gain employment. The result of the deterioration of labour market skill, would have a domino affect on the entire economy as it would cause a loss in productivity and international
This could mean a loss in industry knowledge, technical ability, education due to advancements, and just the operational requirements of certain industries and occupations. This can allow hysteresis to occur, meaning those who are only unemployed in the short term, or due to the level of economic activity can easily turn into long-term structural unemployment, due to the loss of skill. This is the process of hysteresis, which is the economic concept that states that unemployment in the current period of time, results in future unemployment as people lose their skills, ability and knowledge (Dixon and O’Mahony, 2015). This can also affect new entrants into the labour force, such as university graduates. If aggregate demand in the economy is low, then demand in the labour market would be low as it is a derived demand. Therefore, hysteresis would again occur as those new entrants would not be able to break into into the workforce and develop the skills necessary to gain employment. The result of the deterioration of labour market skill, would have a domino affect on the entire economy as it would cause a loss in productivity and international