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What are the reasons of economic unemployment in developed countries?

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What are the reasons of economic unemployment in developed countries?
posted Jul 24, 2018 by anonymous

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There are four main causes of unemployment.

  • The increased population which leads to higher unemployment rates. As the number of people who are looking for jobs is increasing, it is more difficult to arrange jobs for all these huge numbers of workers. In this situation the demand for work will be more than the available occupations.
  • Technological change which plays a big role in the increased unemployment problem. Many jobs which were handled by hands are being done by different machines and technology nowadays.
  • The third cause of unemployment is lack of education or skills for employment. This happens when the qualifications of a person are not sufficient to meet his job responsibilities. If the education was not directed towards the labour market then a mismatch occurs thus leading to structural unemployment.
  • Unemployment can be due to the rising cost. The rising cost makes it hard for the companies to pay the usual optimum salary for the employees or even the minimum wage in some cases. Hence, the employees reject low wage jobs and leave the companies.

And its true for the developing and developed countries both.

answer Jul 24, 2018 by Salil Agrawal
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