Unemployed can be referred to as the situation where one is unable to acquire a job even though they are actively looking for it.
Unemployment is an issue that affects may economies in the world. The rates of unemployment have risen in different countries and there are various causes of this menace.
Causes of unemployment
Technological advancements have been the main cause of unemployment. When a firm decides to use technology that will enable them to save on labour, they may decide to retrench some employees.
Unemployment is also caused by high population growth rates. When the population in a country increases at a very high rate, the labour market does not grow in response and hence many are left unemployed.
When there is a deficient education system, the people cannot get to acquire jobs. This is because they may not possess the required skills and capabilities that would help them secure jobs.
The rise in globalization has also been attributed to cause unemployment. This occurs when companies decide to import cheap labour from other countries and hence the people in the domestic countries are left unemployed.
When there are regional disparities, unemployment tends to occur. Regional disparities refer to the situation where one region or country is more developed than another and hence jobs are concentrated in that area.
There is also the case of voluntary unemployment. This is where people decide to quit their jobs since they do not satisfy them and try looking for new jobs which may be scarce.
There are also instances of seasonal jobs. This is where some sectors have boom seasons and hire more employees and when the boom season ends, they retrench some employees.
Unemployment is also caused by demand deficiency. This is a situation where the people looking for jobs are more than the jobs in the economy.
When there is lowered consumer demand for goods, unemployment rises. Companies may decide to retrench employees if the sales are low.
Unemployment is caused by geographical immobility. This is where people are unable to look for jobs in other regions due to various reasons.
Increased literacy levels also cause unemployment. There are a lot of graduates competing for the scarce white collar jobs in the market.
Unemployment is also caused by capital under utilization. This is where companies do not utilize the resources that they have well so that they can create jobs.
Another cause of unemployment is the jobs requirement specifications. This is where companies prefer people with experience over those with no experience and hence fresh graduates are left unemployed.
Rural urban migration is also another cause of unemployment. This is where people move to urban areas looking for jobs and this creates congestion in the urban job market.
Solutions to unemployment
The level of unemployment can be reduced by making changes to the education system. This involves teaching students to be competitive in the job market and become job creators instead of job seekers.
We can also reduce unemployment by developing rural areas. This will reduce rural-urban migration and regional disparities.
Unemployment can also be reduced through controlled population growth rate. This is a solution that will work in the long run to ensure that unemployment is a not a repetitive issue.
The government can also come up with laws to protect local workers. This is to ensure that they are not left jobless when companies decide to import cheap labour.
By increasing government expenditure, the government is able to create manual and official jobs for its citizens.
The causes of unemployment are diverse and most of them are economical in nature. This hence proves that the solution to this problem of unemployment should also take an economical perspective. This is to ensure that as the economies of the world grow, the people also grow economically by getting jobs.