Which unemployment is caused by a mismatch between workers' skills and job requirements?

• A. Structural unemployment
• B. Cyclical unemployment
• C. Frictional unemployment
• D. Seasonal unemployment

Answer: (A)

The main concept here is unemployment that results from a mismatch between the skills workers have and the skills firms require. When technology, production methods, or consumer demand shift, the kinds of jobs available change, and many workers may not possess the exact skills those new or evolving openings need. This creates longer-lasting unemployment because retraining, education, or relocating takes time and resources. For example, automation or a shift toward more digital services can reduce demand for certain routine or legacy skills, leaving workers who were trained for those older tasks without suitable nearby opportunities unless they gain new qualifications.

This differs from other types of unemployment: frictional unemployment is short-term and driven by people moving between jobs or entering the workforce; cyclical unemployment stems from a downturn in the overall economy; seasonal unemployment follows predictable annual patterns based on weather or tourism cycles.