Which type of unemployment occurs when workers lose jobs due to structural shifts in the economy, such as industry changes?

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Structural unemployment occurs when long-term shifts in the economy change which jobs exist and what skills are in demand. When industries decline or transform—due to automation, globalization, or a shift in consumer demand—workers trained for the old roles find their skills no longer match available jobs, and retraining or relocating may be needed for them to re-enter the labor market. This persists even if overall demand for goods and services is healthy, unlike frictional unemployment, which is short-term job searching between opportunities, or cyclical unemployment, which rises during recessions when demand falls. A deficit is not an unemployment type; it’s a fiscal measure.