Economics · Unemployment

What is the primary cause of structural unemployment in an economy?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Mismatches between available skills and jobs due to lack of industrial productive capacity
2Inadequate productive capacity to absorb the total labor force✓
3Temporary job transitions and frictional movements of labor
4Seasonal variations in agricultural operations

Correct answer

Inadequate productive capacity to absorb the total labor force

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