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Causes Of Unemployment Essay

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Unemployment is one the major economic problems which are affecting most of the countries in the world especially the developing countries. Unemployment is a phenomenon where a person is actively searching for employment, but they are unable to find it. There are two immediate factors causing unemployment, which include voluntary and involuntary unemployment. Voluntary unemployment majorly arises as a result of an individual leaving the current job to search for another work. This unemployment may result when an individual is no longer satisfied with the working conditions, salary or the current position isn't matching the skills. Involuntary unemployment majorly arises when an individual is laid off and is searching for another job. Many…show more content…
This issue results in the graduating students being stranded to find a job since, even if there are companies and business opportunities being created, it will be difficult to match the massive demand for jobs. Government policies can also contribute to unemployment. Privatization of the companies is one of the major factors that can lead to joblessness in a country. When the country decides to privatize a company, it majorly leads to the retrenchment of the workers unto which results in involuntary unemployment. The Government may come to this decision to as a result of poor performance of the company and privatization majorly improves the company’s performance. Policies such as the ones that aims at preventing foreign investments also leads to joblessness since, it inhibits establishment of companies and businesses that would create employment for the citizens. Structural change is also another primary causative agent of joblessness in a country. This unemployment occurs as a result of changes in the labor patterns, natural disasters and the changes in the resource availability. One of the significant cases is when the available resources or raw materials get depleted. This results in the individual who was employed losing their jobs leaving them unable to fit into other roles. Natural disasters also results in joblessness since, in the event of such occurrences it leads to businesses being destroyed and this will likely lead to many people
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