Which type of unemployment is caused by changes in the economy that eliminate jobs?

Structural unemployment is indeed the type caused by changes in the economy that eliminate jobs. This form of unemployment occurs when there is a mismatch between the skills workers have and the skills needed for available jobs. Factors contributing to structural unemployment include technological advances, shifts in consumer preferences, and changes in the global economy that can make certain jobs or industries obsolete.

For instance, if a technological innovation means that fewer workers are needed in a manufacturing plant, those workers may find themselves structurally unemployed. They may need to be retrained or acquire new skills to find employment in different industries that are hiring.

In contrast, frictional unemployment relates to the normal turnover in the labor market as individuals transition between jobs or enter the workforce. Cyclical unemployment is tied to the economic cycle, occurring during recessions when demand for goods and services declines, leading businesses to reduce their workforce. Seasonal unemployment occurs at certain times of the year when industries slow down or shut down, such as in agriculture or tourism. Each of these types of unemployment arises from different economic conditions and does not necessarily result from significant changes in the economy that structurally alter employment landscapes.