What type of unemployment occurs when individuals cannot find jobs due to a mismatch of skills?

The correct answer is structural unemployment because it specifically refers to the situation where there is a mismatch between the skills that workers have and the skills that are in demand in the labor market. This type of unemployment often arises from changes in the economy, such as technological advancements or shifts in consumer preference, leading to the decline of certain industries while others grow. As a result, workers may find themselves without jobs not because there are no jobs available, but because their skills do not align with the needs of employers, creating a barrier to employment.

In contrast, frictional unemployment refers to the short-term unemployment that occurs when individuals are between jobs or are entering the workforce for the first time. Real wage unemployment relates to situations where wages are set above the equilibrium market-clearing level, causing firms to hire fewer workers than they would in a competitive market. Cyclical unemployment is tied to the economic cycle, rising during economic downturns and falling during periods of economic growth, as it is directly linked to overall demand and economic activity. Each of these types of unemployment is distinct from structural unemployment and helps to understand the various reasons why individuals may be out of work at any given time.