Which type of unemployment is due to changes in the economy affecting job availability?

The correct answer is structural unemployment, which occurs when there are fundamental changes in the economy that impact the availability of jobs. This form of unemployment arises from shifts in industries, technology, and consumer preferences, leading to a mismatch between the skills workers possess and the skills required for the available jobs. For example, the rise of automation may reduce the need for certain manual labor positions, resulting in those workers becoming structurally unemployed if they do not acquire the necessary skills for new job opportunities.

Frictional unemployment, on the other hand, is temporary and relates to the time taken for individuals to transition between jobs. Cyclical unemployment is linked to the economic cycle, where job loss happens during periods of economic downturn. Seasonal unemployment affects workers in industries with fluctuating demand throughout the year, such as agriculture or tourism. Understanding these distinctions highlights the persistent and often more complex nature of structural unemployment compared to other types.