What term signifies the economic situation where jobs are scarce, affecting individuals' career prospects?

The term "unemployment" specifically refers to the economic situation where individuals who are willing and able to work cannot find jobs. It encompasses a broader context of job scarcity, clearly indicating that there are fewer job opportunities available in the market compared to the number of individuals seeking work. This definition aligns directly with the question's focus on the impact on individuals' career prospects during times when job openings are limited.

"Underemployment," while relevant, refers to a situation where individuals are working in jobs that do not utilize their skills or where they are working fewer hours than they would prefer. "Instability" denotes a general state of unpredictability in the economy, which may affect job security but does not specifically relate to job scarcity. "Joblessness," although similar to unemployment, is a less formal term and may not be used in the same context in economic discussions. Therefore, the most precise and widely recognized term for this situation is "unemployment."