Which type of unemployment lasts longer due to industry changes, such as losing jobs in mining?

Structural unemployment arises from changes in the economy that fundamentally alter the demand for certain skills and jobs. When industries undergo significant transformations, such as those driven by technological advancements or shifts in consumer preferences, entire sectors may decline. For instance, if a community heavily reliant on mining experiences a downturn, workers may find it challenging to secure employment because their specific skills may not be applicable in other sectors that are growing.

This type of unemployment can last longer compared to other forms because it often requires workers to retrain, acquire new skills, or relocate to find new employment opportunities, processes that can take considerable time. In contrast, frictional unemployment typically refers to short-term transitions between jobs, cyclical unemployment is related to the economic cycle of expansion and contraction, and transitional unemployment usually refers to workers moving between different roles or sectors while maintaining employability within a relatively short timeframe. These differences illustrate why structural unemployment is particularly prolonged in circumstances of industry change.