What are the causes and consequences of high unemployment in Ethiopia?

Unemployment results in a waste of economic resources such as the productive labor force and thereby affect the long run growth potential of the economy. It gives rise to increased crimes, suicides, poverty rates, alcoholism and prostitution (Rafik et al., 2010 and Eita et al, 2010.

People also ask, what is the major cause of unemployment?

The causes of unemployment in high-income countries of the world can be categorized in two ways: either cyclical unemployment caused by the economy being in a recession, or the natural rate of unemployment caused by factors in labor markets, such as government regulations regarding hiring and starting businesses.

What are the main effects of unemployment?

Being unemployed can lead to depression, low self-esteem, anxiety and other mental health issues, especially if an individual truly wants a job but can’t find employment. Tension can occur, causing stress and strain on the body. Economic Issues: During unemployment, there is no income, which leads to poverty.

What are the factors that affect unemployment?

Job creation and unemployment are affected by factors such as aggregate demand, global competition, education, automation, and demographics. These factors can affect the number of workers, the duration of unemployment, and wage rates.

What are the pros and cons of unemployment?

The Pros & Cons of Filing for Unemployment

  • Pro: Wage Supplement. Those who qualify for unemployment benefits receive monthly payments to live on while searching for a new job.
  • Pro: More Free Time.
  • Pro: Improving Credentials.
  • Cons: Less Pay.
  • Con: Loss of Benefits.
  • Con: Resume Gap.