Structural Unemployment

Structural unemployment occurs when there's a mismatch between the skills workers have and the skills needed for available jobs in the economy. This can happen due to technological changes, shifts in consumer demand, or globalization, leading to certain industries declining while others grow. For example, if many manufacturing jobs are automated, workers who only have skills for those jobs may struggle to find new work. Unlike cyclical unemployment, which is related to the economy's overall performance, structural unemployment reflects deeper changes in the job market that require workers to adapt and learn new skills.