Which type of unemployment is associated with significant changes in an industry?

The correct choice highlights structural unemployment, which occurs as a result of significant changes within an industry that alter the demand for certain skills or types of labor. This type of unemployment can arise when advancements in technology, shifts in consumer preferences, or changes in the economic landscape lead to a mismatch between the skills workers possess and the skills that are in demand. For instance, if a manufacturing sector transitions to automate processes, workers skilled in manual assembly may find themselves unemployed because their skills are no longer needed. This emphasizes the fundamental nature of structural unemployment, which is not merely a temporary situation but reflects a deeper transformation in the job market.

In contrast, frictional unemployment occurs when individuals are temporarily unemployed while transitioning between jobs or entering the workforce; it is typically short-term and does not relate to broader industry changes. Transitional unemployment is not a recognized term commonly used in economic discussions. Cyclical unemployment, on the other hand, is connected to the economic cycle, where unemployment rises during periods of economic downturn and falls as the economy recovers, rather than being tied to specific industry changes. Therefore, structural unemployment accurately captures the scenario described in the question regarding substantial shifts in an industry.