Causes of Unemployment

Over the past decades, early 1980’s to 2010 the unemployment problem in Malaysia shows the fluctuations year by years. Besides, unemployed graduates have become the popular case in Malaysia that need more concern by the government. A statistic shows in year 2006 involving 132,900 graduates from institutions of higher learning all over Malaysia indicated that 30.7% of graduates remained unemployed six months after graduation, while 5.7% were still awaiting job placement (Tan, 2007). According to Nor Hartinin, there are more female graduates in this country were unemployed because they lacked with the relevant skills required in the labour market such as communication skills despite having academic results with flying colours. The

problem at hand is the rising rate of unemployment. This problem must be dealt with

This results in some workers losing their jobs. The majority of these workers will be those who are the least productive.

This can influence how we are compensated and it can halt extra work triggering added unemployment.

Unemployment is seriously a big problem, because it threatens the unemployment people’s psychological and metal health. It can cause depression, anxiety, demoralization and low self-esteem, which all influence their health. However, the unemployment does not just affect the health, it is also influential to the human lives. When the rate of the unemployment

There are many reasons for unemployments. For instance, technology, it is replacing workers. “ Most of these workers need more training before they can get a new job in their field.” Another reason is when there’s less demands it creates a cyclical unemployment. Cyclical unemployment is when “ companies loss too much profit when demands fall, If they don’t expect sales to pick up anytime soon, they must lay off workers.” Examples of this is the “ Financial Crisis of 2008” and the “ Great Depression of 1929”.

Unemployment is a major issue in current Australian economy. A study carried out by Saunders (2002) concluded that the higher the unemployment rate may skew the income distribution and result in increasing income inequality and poverty. It is bad for the economy and for society.

The second macroeconomics variables we choose is unemployment rate. Based on the materials shown above, among 2004 to 2008 years, the unemployment rate decrease which means the many people get the job during these years. Unemployment rate can be resulted when the employees leave their job to find a better one. Another reason causes the unemployment is the unemployed persons lack the skills or experience to obtain a job. Moreover, the youth who just graduated need longer time for seeking a suitable job that fits their new skills and qualifications. These show the in short-period of unemployment situation. Among these years, the local economy in good condition which had founded many companies such as utilities companies, financials companies, industrials that create many job opportunities. The foreign direct investment increase also creates the job opportunities in Australia. The high level of Australia exports of goods and services within these years results the good economy condition in Australia, the unemployment rate decline each year.

The companies may rise thier epectation form the workers instead of hireing more workers. For example, some amount of work could be expected form works by adminustrators that a five day worker are doing. Furthermore, this make situation worse and make the jobs unpleasent for workers. In addition, this do not help to hiering more emploees.

education has serious impact for individuals and society. It will limit the students’ career options and lower earning potential and rise the unemployment rates.

Reduction in Full-Time Employment: The current macro environment suggests a reduction in the number of full-time resources, because of the high labour costs. However, because of the aging population, it’s becoming increasingly difficult to find qualified workers. Sounds counter intuitive; a reduction of full-time staff to cut costs, but many companies in the industry are paying premiums over scheduled tariffs in order to keep their current workforce.

Unemployment in some cases is not an individual problem. While some may think that unemployment is always the beholders fault, in Nigeria however, it is quite the contrary. Raw data and statistics can show exactly why a country has an unemployment problem. Along with that, causes of unemployment can be significant to why unemployment is such a critical problem. Even more, the effects of unemployment hint to the future of any country that struggles with this. With all of this in mind, one must wonder how much unemployment really affects a country.

GET (Graduate Employment and Training) reports suggest that most employers find it difficult to recruit suitable number of graduates who can communicate while working in a team, analyse problem or manage their individual learning of new skills (Holden and Jameson, 2002). One of the most direct causes to this problem is the scarcity of quality graduates in the labour market, the graduates are accused for not being able to suit the graduates’ labour market needs. Employers recognize the number of technical skills possessed by graduates but not that of the non-technical skills (some call it employability skills) as the employers realize that non-technical skills are not strongly embraced by

Money is an important component that can help ones to function properly in this society. However, money defines our self-worth and value in this society. For decades, unemployment has become a big issue in our community. The younger generation are the one who suffers the most from the crisis. In 2009 alone, 6.7 million youths joined the ranks of the unemployed, and compare this with an average annual increase of 191,000 in the 10 years before the crisis 1997 to 2007(Elder,2010). Youth unemployment is a crucial issue in our society. Unfortunately, a lot of young people are going through that situation. When it comes to find a job, young people are the less fortunate for many reasons. For instance, some employers might be biased on ages and believes that young people do not have skills or enough experiences to perform at the level required for the jobs. The problem of youth unemployment has many causes and consequences in our society. Youth unemployment can affect the economy, family relationship, increase crime rates and, mental health.

Malaysia’s Unemployment Rate since 2000 till present. Notice the peaks after an expansion and troughs after a recession. This graph also indicates the business cycle in Malaysia.