Causes And Causes Of Unemployment

807 Words4 Pages

Unemployment is when a person is actively searching for employment but is unable to find work. Unemployment is sometimes used as a measure of the health of the economy. They often call that the unemployment rate. This is the number of unemployed people divided by the total number of people living in that country.

The officially registered working population. So everyone who works at least 12 hours a week in the formal sector and is between the age of 15 and 65. This is the employed people divided by the total number of people living in that country.

The result of unemployment

The consequences are first decrease of costumer spending. People who are unemployed can buy less and consume less (because usually a social-security benefit is lower than the income when you work). You can even end in a social isolation when you don’t have any working environment. Because you have lost contact with colleagues, and sometimes your friends even let you fall.This and the fact that you have to live with less money, can cause social tensions.

Types and causes of unemployment
~Demand Deficient or Cyclical Unemployment: Demand deficient unemployment is when the economy is full capability.
~Structural Unemployment – This is due to a mismatch of skills in the labour market. This can be caused because the following;
• Occupational immobilities: This is when it’s too difficult to learn new skills in a new industry because there are made for example a lot of technical

More about Causes And Causes Of Unemployment

Open Document