Which type of unemployment is caused by a mismatch between job seekers' skills and available jobs?

Structural unemployment occurs when there is a disconnect between the skills of the workforce and the skills that employers are seeking in potential employees. This mismatch can arise from various factors, such as technological changes or shifts in the economy that reduce the demand for certain skill sets while increasing it for others. For instance, if a factory automates its production process, workers who have only manual assembly skills may find themselves without jobs, as they are no longer aligned with the needs of the industry.

In contrast, cyclical unemployment is associated with the economic cycle; it tends to rise during economic downturns and fall during periods of economic growth. Frictional unemployment refers to the short-term unemployment that occurs when people are in between jobs or are entering the workforce for the first time. Seasonal unemployment is linked to jobs that only exist during certain seasons or periods of the year, like agricultural work during harvest times. Each type of unemployment is rooted in different causes, but structural unemployment specifically addresses the skill mismatch that can lead to longer-term joblessness for affected individuals.