Unemployment and its causes

Unemployment refers to a situation where citizens of a given country or state are willing and able to work but there are no job opportunities in the economy to get them employed.

Causes of unemployment

Unemployment can be caused by many factors including:

1.under utilization of resources in a country which brings about an imbalance between the demand and availability of employment opportunities in a given economy.

2.poor Education system in a country.An education system which does not equip one with the necessary skills and techniques required in working environment makes the learners under productive reducing their chances of securing employments.

3.Adverse weather conditions.Unfavorable weather conditions i.e long droughts and heavy rainfall may disrupt agricultural activities rendering the people employed in the industry unemployed.

4.Inadequate capital to start businesses ,exploit resources and training manpower also causes unemployment since only few employment opportunities are created in a given economy.This leads to a situation where majority of people in a given state live below the poverty line.

5.Political instability.Economies of countries which have unstable economies have less employment opportunities to its people since the production processes in the economy are greatly affected.

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