1. News & Issues
You can opt-out at any time. Please refer to our privacy policy for contact information.

Readers Respond: What Causes Unemployment?

Responses: 166


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

causes of unemployment

poverty, illitrate ,unemployment is also caused by job outsourcinng when company moves it's manufacturing or call centers to another country.
—Guest Thashfiya.N

The cause of unemployment

Unemployment happened because of weak government, economic issues, politic, personal attitude, and so on.
—Guest Proloeng

causes of unemployment in tanzania

povert and lack of education in Tanzania may lead to unemployment.
—Guest mtao shaban

Some reasons I got

>For-profit colleges destroying people with student debt >bad immigration policy allowing companies to import virtual slaves (IE: workers on visitor visas that stay) >Employers refusing to train and would rather have people trained elsewhere >Employers refusing to pay a living wage >everyone wanting to be a doctor/lawyer >nobody wanting the lower level jobs
—Guest Someone

Benefits won't help

In theory, I like this idea, but I don’t think having more people on the government payroll truly contributes to growth. I think it looks like growth. If the country is going into more and more debt to afford the continuation of these benefits, are we really growing, or are we, yet again, borrowing against the future and short changing any growth we could hope to have in the future? Right now corporations and banks are hoarding cash, and as long as the govt keeps hiding the true damage to the economy with “stimulus” it’s not going to change.
—Guest John Russell

Extend benefits

Extending unemployment benefits is a necessary but not sufficient policy. The administration should consider “jump starting” the job market via a number of measures to include tax credits for investment, reduction of out-of-pocket outlays (e.g. social costs) for workers and some expenditure switching at the federal budget level to make such measures as “budget neutral” as possible. The faster jobs get generated the faster the recovery and the attendant increase in tax revenues to both states and the federal government. The government should also consider Public-Private-Partnerships (PPPs) to refurbish America’s dilapidated infrastructure as a means of job creation. I can think of no variable more important to recovery than employment. Three-hundred dollars per week won’t buy much beyond basic necessities and that means a VERY slow recovery. Finally, job loss combined with home foreclosure is a very lethal combination of negative factors.
—Guest Jim

Should benefits be extended

Buying food and basic needs doesn’t really bring back jobs so easily. It gives people more of a reason to sit back and not worry, while maintaining current spending. It is good to help the people, but they should be put to work for their benefits. Make them clean up the streets at the least. Bring some good from the free cash. Give them a good reason to want a new job.
—Guest Duda

Causes of unemployment

Ignorance, low investment, geographical immobility may cause unemployment
—Guest Irene Ussiri


poor education systems in Africa which rely much on theory than practicas
—Guest jabeth cherutich

Poor education and training

Education focuses on the assessment of reading and writing to award marks for academic performance. Rather, they should build more schools that can train people to be able to create their own businesses. Eg. Lesotho has leloaleng, loiki, lerotholi poli technics, temong, etc. as the institutions that prepare student to be creating and produce for themselves.
—Guest Moshoeshoe Mafisa

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

Share Your Opinion

What Causes Unemployment?

Receive a one-time notification when your response is published.

  1. About.com
  2. News & Issues
  3. US Economy
  4. Statistics
  5. Employment and Unemployment
  6. What are the causes of unemployment

©2014 About.com. All rights reserved.