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Readers Respond: What Causes Unemployment?

Responses: 156


Unemployment is caused when someone is laid off, fired or quits -- and is still looking for a job. This type of natural unemployment always occurs, even in a healthy economy. If someone retires, goes back to school or leaves the work force to take care of children or other family member, that is not unemployment. Also, if someone gives up looking for work, they are also not counted as unemployed by the Federal government. For this reason, some people say the government undercounts the real unemployment rate.

Sometimes unemployment is a result of advanced technology, such as computers or robots, which replaces worker tasks with machines. If the workers are not retrained, they may not have the skills needed to get a new job. This is known as structural unemployment.

Unemployment can also be caused by job outsourcing, when a company moves its manufacturing or call centers to another country where labor costs are cheaper. This occurred in many states after NAFTA was signed in 1994. It was also caused when workers in China and India gained the skills needed by American companies.

Large scale unemployment is caused when consumer demand slows enough that businesses lose too much profit. If they don't expect sales to pick up anytime soon, they then must lay off workers. This usually happens during the recession phase of the business cycle.

Compare the U.S. Unemployment Rate by Year

However, unemployment from the financial crisis of 2008 just won't let up. What caused it? Was it Wall Street bankers? Government economic policy? What do you think? Share Your Opinion

The main cause of unemployment

Main causes of unemployment is 1 poverty.2 Education.3 illiterate leader.
—Guest A jabbar khan musa khail

causes of unemployment

laziness where one cannot be committed to go and look for a job
—Guest charles kiomo

unemployment in SA

People have lack of knowledge and poor educational system
—Guest majozi359

causes of unemployment in kenya today

one of the most avoided cause is influence from developed nations/countries, of late the rate of educated young people who move to other countries is in the rise in the name of a better pay, also our people are being brain drained by use of elevated wages as baits to go and do innovations oversees living kenya developing but mark-timing in real sense.
—Guest peter

causes of unemployment

It caused by the following factors 1.Rapid population growth 2.Inappropriate technology 3.Nature of the education system 4.Seasonality in production especialy in the agricultural sector 5.massive rural urban migration
—Guest Erick muyesu

government operations

government operations like removing small scale retailers at a place so as to allow investers to perform their activities which leads to lack of employment to small scale retailers
—Guest samwel boss

causes of unemployment

Unemployment is caused by economic inflation, low personal entrepreneurial initiative, favoritism and corruption
—Guest salamatu seidu wahab


Cause of unemployement from my point of view unemployement is caused by powerful trade unions typical e.g what happen in platinium mining industry in S.A were miners were involve in strike it resulted in retrenchement which led to unemployement

We are all guilty

When you pump your own gas, use an ATM, self-checkout at stores, pay bills on-line, send e-mails, etc. you are part of the problem, because you are taking someones' job. Be it a service station attendent, bank teller, mailman, store-clerk, or many other millions of jobs that have been lost to technology that we readily embrace. So as long as it's easier for us, screw thy neighbor.
—Guest grayintruder

goverment handouts

goverment handouts are a main cause of unemployment as a lot of people dont want to work when they get food stamps and welfare there have ben many times when you hear someone say why they should work for $10 an hour when they are getting everything they need from the goverment
—Guest guest

What Causes Unemployment?

The larger employers are too much greedy, move jobs to the lower place, so cause unemployment rate jumps. They want more and pay less...that's the main problems. Check the stock price of those big companies in US only, don't move, look stable, for those who move looking for cheaper labor cause the country employment rate drops...Is that right?
—Guest Kevin Tran

How to Minimize Unemployment

Every economy is built on two major assets human and natural resources. Educational, financial, political and religious must focus on investing and developing these assets for job creation than looking for job and meeting basic human needs including putting in place policies, programs and services to solve human problems through entrepreneurship. Every family should have comprehensive list of natural resources and human problems for educational training and job creation than looking for job(check my book online on the topic).
—Guest Dr.Richard Corker-Caulker

causes of unemployment

its only natural that some people do not have a job like others because some have to be employed by others.basically the world has peace simply bcz we do not all hev wat we want

bad government

Government. Will not provide good opertunity to people if they provide opertunity rural people don't know the full information about that particular thing
—Guest s raviteja

causes of unemployment

poverty and inflation ....................................................................................................
—Guest viks

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What Causes Unemployment?

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