Cyclical unemployment is primarily caused by:

Cyclical unemployment occurs as a direct response to the fluctuations in the business cycle. When the economy is performing poorly, output falls below its potential, leading to reduced demand for goods and services. This diminished demand can result in companies laying off workers or reducing hiring, thus increasing unemployment rates. Conversely, during periods of economic expansion, when the output exceeds potential levels, businesses tend to hire more employees to meet consumer demand, which can reduce cyclical unemployment.

Understanding that cyclical unemployment is specifically linked to these economic fluctuations helps distinguish it from other types of unemployment. For example, long-term changes in the labor market refer more to structural unemployment, where shifts in industry or technology lead to long-lasting job displacement. Temporary job transitions relate to frictional unemployment, which occurs when individuals are between jobs but not necessarily tied to the broader economic environment. Lastly, workers not fitting available job profiles signifies a mismatch in skills rather than an overall economic deficiency. Thus, the correct answer honed in on economic conditions as the primary cause of cyclical unemployment.