When companies engage in restructuring and it affects jobs, this is known as what type of unemployment?

When companies undergo restructuring that impacts jobs, this scenario is classified as structural unemployment. Structural unemployment arises from changes in the economy that affect the demand for certain skills or job categories, often due to technological advancements, shifts in consumer preference, or industry transformation. In this case, when companies restructure, they may eliminate certain positions that are no longer needed or move operations to different locations, resulting in a mismatch between the skills available in the labor market and the skills needed for the new job opportunities that are created.

Frictional unemployment refers to the temporary unemployment that occurs when individuals are between jobs or entering the workforce for the first time. It is a natural part of the job search process and does not typically involve a fundamental change in the economy or industries.

Seasonal unemployment is related to jobs that are dependent on the time of year, such as agricultural work or holiday retail jobs. It occurs due to predictable fluctuations in demand at certain times of the year.

Cyclical unemployment is tied to the economy's overall performance, often increasing during economic downturns and decreasing during periods of expansion. It reflects broader economic trends rather than individual company restructuring.

Thus, structural unemployment specifically addresses the situation where job losses are a result of deeper changes in the economic structure,