The causes of unemployment in the world


 

The unemployment

The term unemployment according to the Department of Labor Statistics refers to people who have not had work, even though they have been searching for it for at least four weeks of the period of their willingness to work, so the person who is classified as unemployed must fulfill the conditions; that he is able to work, available for work, and that looking for a job. The unemployment rate is the most common measure in measuring unemployment, and it is calculated by dividing the number of unemployed by the workforce. It is worth noting that unemployment is an economic indicator that indicates the ability of workers to obtain a profitable job to contribute to the productive outputs of the economy, so the more the number of unemployed, the less Economic production with consumption remaining the same, leading to an economic crisis, and may also lead to political and social turmoil.

The causes of unemployment in the world

There are many reasons that led to the spread of unemployment in the world, the most prominent of which are the following:

Economic problems:

  • Due to the difficult economic conditions that countries are going through, and the global economic crisis in 2008, which is the worst since 1980, it has led to high prices and inflation, which in turn affected various sectors through the use of private companies to restructure employees and dispense with a good number of them to reduce The costs, in addition to the technological developments that have caused robots and smart devices to replace working employees, leaving them without work.

Increased population growth:

  • Increased population growth leads to increased pressure on goods, services and employment opportunities, which makes many people without work despite their ability to work, the more the population increases the demand for job opportunities because these individuals need employment and money , and when this is not accompanied by an increase in opportunities Work leads to unemployment.

The large number of graduates from universities and institutes:

  • It is one of the most important causes of unemployment, which has increased in the recent period of the growing and complexity of the problem, namely the presence of the large number of graduates of universities, colleges and institutes in all disciplines, or the lack of skills required in graduates of institutes and universities .

Wars and displacement:

  • It is a type of population increase that leads to the generation of a pressure force on goods and services. When there is a state of war in a country, its population will take refuge in neighboring countries, which increases the pressure on available job opportunities in the hosting country, and thus increases the chances of cases Unemployment, the best proof of which is the Hashemite Kingdom of Jordan, which had welcomed Syrian brothers over the past few years.

Corruption:

  • It is one of the reasons that lead to unemployment, because of the employment of the unqualified in places that they do not deserve through mediation or personal knowledge, which prevents the people with specialization from joining the jobs they deserve. 

Implications for unemployment:

Unemployment affects the individual financially and emotionally. It can also affect the economy if the unemployment rate rises to 5% or 6%, and when many people are unemployed, the percentage of consumer spending is one of the main engines of economic growth, and if unemployment rates continue to rise This can lead to stagnation or recession and even inflation , and the lower the consumer spending by the unemployed, the less the companies ’revenues, so the companies in turn are forced to reduce costs by reducing the number of employees, which speeds up the recession, and the consequences of the prolonged recession are that workers become Unemployed for very long periods Ted for more than six months, which means that their job skills are no longer in line with the requirements of the new jobs are currently available, which is why many economists believe that the recession has increased the natural rate of unemployment.


Image source

Coin Marketplace

STEEM 0.17
TRX 0.15
JST 0.028
BTC 60453.64
ETH 2425.08
USDT 1.00
SBD 2.48