What is an example of structural unemployment?

Structural unemployment occurs when there is a mismatch between the skills of the workforce and the skills required for available jobs, often caused by changes in the economy. Technological advancements can lead to structural unemployment when new technologies replace the need for certain jobs, rendering the skills of some workers obsolete. For example, if a factory automates its production process, workers who previously operated machinery may find themselves unemployed because their skills no longer meet the requirements of the job market, and they may need to learn new skills or transition to different industries where opportunities are available.

In contrast, seasonal layoffs in agriculture typically reflect seasonal demand fluctuations and are indicative of cyclical unemployment. Transitioning workers and those affected by economic downturns represent other forms of unemployment, with workers transitioning between jobs relating to frictional unemployment and downturns affecting all sectors more aligned with cyclical unemployment. Thus, the correct choice exemplifies structural unemployment effectively through the lens of evolving job requirements due to technology.