Question

'Structural unemployment' arises due to ____.

• A. deflationary conditions
• B. heavy industry bias
• C. shortage of raw materials
• D. inadequate productive capacity

Answer 1

The correct option is D inadequate productive capacity

Structural unemployment is a form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded in workers by employers (also known as the skills gap). Structural unemployment is often brought about by technological changes that make the job skills of many of today's workers obsolete.