Causes of Unemployment

The unemployment rate has begun to gradually worsen, and there is a possibility that we have recorded the lowest ever. As the unemployment rate increases, the reason is aging, youthfulness, and outsourcing, but some claim that this is the cause. One reason the unemployment rate continues to rise is the age of the population. There are certain reasons to confirm that there are few families who are not affected by the major depression. "You are old, you are not hired, and no one wants to hire an old man," Aaronson, pg.

There are 7 reasons for unemployment. Four lead to friction and unemployment. This kind of unemployment means that employees leave to find a better job. Both lead to structural unemployment. At that time, the skills and income requirements of workers were no longer suitable for existing work. The seventh cause leads to periodic unemployment. Even in a healthy economy, there is the possibility of friction and structural unemployment. According to the Federal Reserve, the natural unemployment rate is between 4.5% and 5.0%. The Bureau of Labor Statistics has defined unemployed people as unemployed people and is actively looking for work in the past four weeks. If they do not keep looking, BLS does not calculate their labor force

Regular unemployment The biggest reason for unemployment in the UK is usually cyclical / severe unemployment. This is the unemployment caused by the decline in production during the recession. During the recession of 2008, the youth unemployment rate grew faster than the actual unemployment rate. Normally, young workers are more likely to experience unemployment, the least experienced and the easiest to get out of the labor market. In addition, companies do not usually dismiss workers, but they cease accepting new (young) workers.

Structural unemployment and cyclical unemployment occur throughout the economy. Structural unemployment is caused by economic transformation, technological progress, and the lack of vocational skills necessary for workers, making it difficult for workers to find jobs. Conversely, changes in the business cycle of the company lead to periodic unemployment. For example, assume that the economy as a whole has recently made significant technological progress. To continue growing, companies need to hire workers with technical skills (such as programming and math skills). Individuals who do not have technical skills may be left behind and there is a possibility of experiencing structural unemployment as there is a mismatch between work and market workers.