In relation to employment, what type of unemployment occurs due to significant changes in industry structure?

The correct answer is structural unemployment. This type of unemployment arises when there are fundamental shifts in the economy that alter the landscape of certain industries. These changes can involve advancements in technology, shifts in consumer preferences, globalization, or other factors that may lead to certain jobs becoming obsolete while creating a mismatch between the skills of the workforce and the needs of the market.

Structural unemployment differs from other types of unemployment in that it is not temporary and is often more pervasive and challenging to resolve. For instance, if a factory closes due to automation, the workers may find it hard to secure new jobs if their skills do not align with the emerging opportunities available in the job market. This often requires retraining or upskilling, which can take time.

Frictional unemployment refers to the short-term unemployment that occurs when individuals are temporarily between jobs or entering the workforce. Transitional unemployment, while it may seem similar, is not a commonly recognized term in economic theory and does not represent an established category of unemployment. Technological unemployment specifically results from technological advancements that replace human labor but does not necessarily encompass the broader structural changes in industry that contribute to structural unemployment. Thus, the unique characteristics of structural unemployment make it the most appropriate choice in the context of significant changes in industry structure