Causes Of Unemployment

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There are a few types of unemployment: 1. Involuntary (most common) 2. Voluntary 3. Transient Involuntary is where someone can not gain employment even though they are trying. there are numerous causes of this, here a few: Lack of skills Lack of available jobs Lack of entrepreneurship Geographical (unable to reach available geographical locations with available work) Unemployable (usually the long-term unemployed, have not worked for so long no one will take them on) Voluntary Unemployment: someone chooses not to work: Why? The benefit system in place is too generous (i.e. no incentive to return to work) Too wealthy to need to work Criminal behaviour and also criminal record Transient, means that they are currently between jobs and will have a month or two off between one job and the next.. this is sometimes referenced to as the 'natural' rate of unemployment. Other notable economic theories are that of 'efficiency wages' causing the cost of employing workers as being too high, having been driven up by Company A offering the best employee £100, then company B offering the same employee £110 to join them and so on, causing an inflation in the value of the employees with the best skills and the less skilled workers being left behind... this then leads to uncompetitive prices for both company A and B to produce internationally and invariably they will have to either close business, or shed some workforce.. both of which cause unemployment. Another big cause can be a shift in the export market of an economy... a good example was in the UK during the early 20th century: Britain was heavily focused on the cotton and coal industries at the turn of the century.. there was however an international shift occurring where India was taking over their coal and a rise in oil production was leading a shift away from
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