Unemployment is the one constant throughout history. Despite changing technology, the underlying principles of why unemployment occurs remain the same. It’s also what continues to this day. The three main causes of unemployment are economic conditions, new technology, and increasing populations.
Economic conditions are the main factor in unemployment. The 2008 economic crash caused unemployment to rise dramatically, and the same has been true of every economic slump throughout history. An economic crash causes businesses to fold and posts to disappear. If there isn’t enough money coming into a company, it can no longer afford to pay its employees.
Once a company fails to pay its employees it has no choice but to let them go. Sometimes, it reduces its size in waves of redundancies or it simply shuts down.
New technology also has an impact. As conventional tasks become more automated and more convenient, some employees find their posts obsolete. With no reason to continue paying them, they lose their jobs as the job simply disappears. It’s why the Swing Riots occurred in Britain during the 1830s. Workers fought against the introduction of threshing machines which would make many traditional jobs disappear.
In the 21st century, the main threats are robotics and increasingly intelligent computers. Professional filing systems which require teams of people to maintain are now on a single computer server controlled by a single person. This is the form of unemployment which happens during prosperous times when companies can afford to invest in new technologies.
Increasing populations often lead to unemployment at a slower rate. The numbers of unemployed have increased over the past few decades as the population has accelerated. To an extent, the increasing demand for goods and trade balances out the population increase, but businesses often fail to deal with the short-term consequences.
Initially, many young humans aren’t yet old enough to need the economy to enlarge itself. It will take at least 20 years before the economy needs to respond to growing demand. Children generally don’t figure in the size of the economy or the need for jobs, on a large scale. It’s only when they become adults things start to change.
And it doesn’t always keep pace with the number of adults in society. There are simply not enough employment roles for the number of applicants.
New technology and an increasing population generally go hand-in-hand. If technology remained the same the increasing population wouldn’t matter as the jobs would form naturally. The rescinding in the number of roles from multiple sides overwhelms the employment market and we finish with a shortfall in jobs.
Unemployment seems like a complicated issue as people attempt to take complicated formulae into account. Really, it’s caused by the same three things it has always been caused by. Poor economic conditions, new technological advances, and an increasing population have and always will continue to perpetuate the problem of unemployment.
Cause and Effect of Unemployment
Unemployment is an issue that is a major problem globally. People willing to work in different positions are unable to secure jobs or positions. They thus end up unemployed. Unemployment crisis have been on the increase especially in countries with large populations. Governments should, however, tries as much to help people secure jobs to help them earn a living. Individuals who are working tend to have better lifestyles compared to the people who have no jobs at all. The young people, for example, especially in developing countries, have greater challenges securing employment in the job market. Unemployment is when people who can work and are willing to work are unable to get positions to work in. There are however various causes of unemployment for different people. The effects of unemployment, on the other hand, are suffered by the unemployed, their families and also the economy of the nation affected.
Causes of Unemployment
There are many reasons known as to why people are unable to secure jobs. The position may be available, but the unemployed persons may not have or possess the required skills for the job or task. In such a situation persons cannot be hired as they may not be in a position to perform tasks and activities as required. Lack of job or work experience is another major cause of unemployment. Some jobs require one to have some experience. Without the necessary experience on the job, an individual may not get the job. Another reason for which one may be unemployed is when companies lay off some of its employees. One may remain unemployed before securing a new job elsewhere. An individual may also be unemployed after quitting a job to look for another new job. Technology advancement is also one of the leading causes of unemployment in many states. The use of improved and modern technology does not require many people working in the company.
Effects of Unemployment
People who are unemployed have no income. Meeting financial needs thus becomes a problem and challenge. Unemployment may also lead to poverty. The young people who are unemployed may engage in crime to earn cash for use. It is also common that those that are unemployed may live low-quality life in terms of shelter, feeding and health. Unemployment also has adverse effects on the economy of any state. Governments thus need to address the issue of unemployment.