What are the Causes of Unemployment | 10 Main Factors Explained

Unemployment is a widespread problem and is seen in almost all the countries in the world. Global recession is one of the main cause but there are other causes too.

The main causes of unemployment are

  • Financial aid from the government
  • Technological advancement
  • Lack of education
  • Over population
  • Lack of resources
  • Corruption in the government and regulatory bodies
  • Health issues
  • Work habits or conditions
  • Lack of guidance
  • Personal reasons.

What are the Causes of Unemployment

Financial aid from the government

Many governments around the world are offering freebies to people like unemployment grant, food ration, widow pensions etc. These are good for the people who avail them.

However, when these benefits satisfy their regular needs, then they would not be interested to take up jobs. Instead, they spend time for themselves and the family.

This fact is know to the governments too and it is also a burden to the state. Yet, the parties in power wish to continue it for the fear of losing votes. Hence, you might have notice few developed countries have gone into financial turmoil due to these schemes.

Technological advancement:

Advancement of technology is one of the prime causes of unemployment. This has happened in two ways

a) Decrease in need for human workforce.

b) Change in habits and mind set of people.

Due to technology advancement, many jobs which were done by man have been decreased. This is mostly related to physical job and to some extent mind related jobs. Due to development of heavy machinery like the excavators, road cleaners, crop harvesters the smaller jobs of laborers have declined. This would further decline due to robotics and other advancements.

Due to computer, ATM machines and mobiles, the work of many clerks, technicians is decreased.

What are the Causes of Unemployment

Besides this, due to technology use of automobiles, mobile phones, television, cooking ware, the man has become both physically weak and also lazy.

Due to this weakness and laziness he is unable to take up heavy work. Even, if he is willing, he would suffer from health issues.

Lack of education:

Education is one of the prime factor which enables a person to work in many types of jobs anywhere in the world. Education is one of the reason due to which many families overcame poverty in very short span of time.

Lack of education leads to inhibition of communication and confidence in the individual to take up well paid and comfortable jobs.

Over population

If you notice around, the rate of unemployment is low in countries with less population. This is because, every country or state has certain limits in the availability of resources which need to be worked on. If the population is high and keeps on growing, the resources will be unable to generate more jobs. In such cases, the best way would be to minimize population.

Lack of resources

As mentioned in previous point, presence of  resources is essential to generate employment. In the past the main resource was agriculture, mining, office jobs etc. But internet and technology have become new resources and have opened up plenty of jobs. But still, this requires education and also the resource can get overfilled quickly unless population is limited.

Corruption in the government and regulatory bodies

This is causes of unemployment due to corruption and irresponsible people in positions. Let us take an example for this.

A college or educational institute need to hire sufficient staff corresponding to the students enrolled. However, the college enrolls students but do not hire faculty to save money. Here the lack of employment occurs genuinely out of greed from the owner. The authorized inspecting officers keep giving approval to the college by accepting bribe from the college.

Health issues

A person cannot work if he is not healthy both physically and mentally. Even if he is handicapped, he would find it difficult to get into desired employment.

Work habits or conditions

The environment at the work place plays a great role in deciding the employment. If the work environment is comfortable then employees would not like to work there.

Sometimes, there would extra work without pay as governments do not enact strict labor laws.

Lack of guidance

Many young people require proper guidance in planning their career. Some of them due to wrong steps taken would end up having no job. Guidance in career or education would be an important steps towards employment.

Personal reasons.

Many people do not opt for employment out of personal reasons like spiritual life, family demands, incompatibility with work habits etc.

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