Final answer:
Structural unemployment occurs when workers' skills do not align with current market demands, leading to a mismatch in the labor market that can result in long-term joblessness.
Step-by-step explanation:
The type of unemployment that occurs because the skills of workers do not match the needs of employers in the labor market is known as structural unemployment. This is a situation where there is a disjuncture between the job skills that individuals offer and the skills that are currently in demand by employers. This mismatch can arise for various reasons, including geographic discrepancies, technological advancements that replace jobs, educational gaps, and sudden changes in industry needs. For instance, if an industry declines, workers with specific skills pertinent to that industry may find themselves out of work because their skills do not easily transfer to other sectors. As a result, affected individuals might need to seek retraining, accept lower-paying jobs that do not fully utilize their skills, or face long-term unemployment.