What is the unemployment type that is typically caused by seasonal changes in demand for labor?

Seasonal unemployment is a type of unemployment that corresponds directly to fluctuations in demand for labor throughout the year. Certain industries naturally experience periods of high demand followed by slower times based on the seasons. For example, agriculture often requires more labor during harvest time, and tourism might peak in the summer months when travel is more popular. In these cases, as the season changes and the demand for workers decreases, individuals may find themselves out of work temporarily until the next peak season rolls around. This cyclical nature distinctly characterizes seasonal unemployment, making it the correct answer to this question.

On the other hand, structural unemployment arises from fundamental changes in the economy, such as technological advancements or shifts in consumer preferences that create a mismatch between skills and job requirements. Frictional unemployment refers to the short-term period when individuals are transitioning between jobs or entering the workforce. Cyclical unemployment is caused by downturns in the economy, typically linked to reduced demand for goods and services, rather than seasonal changes. Therefore, seasonal unemployment is specifically tied to those predictable and recurring changes in labor demand.