Institutional unemployment occurs when there are structural issues in the labor market that prevent individuals from finding jobs, even when there are job vacancies. One key factor that can lead to institutional unemployment is housing shortages in job-rich areas. When an area is experiencing a high demand for employees but lacks sufficient housing, potential workers may be unable to relocate or commute to take advantage of these job opportunities. This mismatch between job availability and housing can create a situation where people are willing to work but cannot find suitable living arrangements, ultimately leading to higher unemployment rates in those job-rich areas.
The other situations mentioned may do contribute to unemployment, but they do not necessarily reflect the structural issues characteristic of institutional unemployment. Shortages in skill sets may lead to frictional or cyclical unemployment as individuals may lack the necessary qualifications for available jobs. Temporary job transitions and seasonal job loss indicate fluctuations in employment but are not persistent enough to categorize them as institutional factors. Hence, the presence of housing shortages in areas with abundant job opportunities distinctly illustrates a cause of institutional unemployment.