Which type of unemployment arises from changes in the industry's structural composition?

The type of unemployment that arises from changes in the industry's structural composition is structural unemployment. This occurs when there is a fundamental shift in the economy that leads to a mismatch between the skills workers possess and the skills demanded by employers. Factors contributing to structural unemployment include technological advancements, shifts in consumer preferences, globalization, or changes in the economy that render certain jobs obsolete.

For instance, if a manufacturing industry increasingly automates its processes, workers who once filled positions in assembly might find themselves unemployed due to a lack of required technical skills. They may need retraining or to seek jobs in other industries where demand is higher.

In contrast, seasonal unemployment is related to seasonal work patterns, such as agriculture or tourism, and cyclical unemployment occurs due to fluctuations in the economy, particularly during recessions. Frictional unemployment refers to the time individuals take to move between jobs, which is often a natural part of the job search process.