Which type of unemployment is primarily caused by skills not matching job needs due to technology or industry changes?

Structural unemployment occurs when there is a mismatch between the skills of the workforce and the skills needed for available jobs. This often arises due to technological advancements or shifts in industry trends that change the nature of work. For instance, as new technologies emerge, certain jobs may become obsolete, while new roles require specific skills that current workers may not possess. This type of unemployment highlights the importance of continuous education and training to adapt to evolving job markets.

In contrast, frictional unemployment refers to the short-term unemployment that occurs when individuals are in between jobs or are new entrants to the workforce. Cyclical unemployment is linked to the economic cycle, occurring during downturns when there is insufficient demand for goods and services. Seasonal unemployment affects workers who are employed in industries or sectors that are dependent on seasonal cycles, such as agriculture or tourism. Each of these forms of unemployment has distinct characteristics and causes, but structural unemployment specifically relates to the misalignment of skills due to ongoing changes in technology and industries.