What are the causes and consequences of unemployment?

Unemployment causes political instability (Stone 75). effects of unemployment include over exploitation of available labor, reduced rate of economic growth, reduced human capacity, loss of human resources and increase in poverty levels (Dawson 101).

Also asked, what are the main causes of unemployment?

Causes of unemployment Unemployment is caused by various reasons that come from both the demand side, or employer, and the supply side, or the worker. From the demand side, it may be caused by high interest rates, global recession, and financial crisis.

Also to know, what is the cause and effect of unemployment?

The top causes are increased population, rapid technological change, lack of education or skills and rising cost. The various effects of unemployment include financial, social and psychological problems. Unemployment has become a major problem which affects our life, health, economy and community.

What are the two reasons for unemployment?

A look at the main causes of unemployment – including demand deficient, structural, frictional and real wage unemployment.Main types of unemployment

  • Occupational immobilities.
  • Geographical immobilities.
  • Technological change.
  • Structural change in the economy.
  • See: structural unemployment.
  • What are the five causes of unemployment?

    A look at the main causes of unemployment – including demand deficient, structural, frictional and real wage unemployment.Main types of unemployment

  • Occupational immobilities.
  • Geographical immobilities.
  • Technological change.
  • Structural change in the economy.
  • See: structural unemployment.