The causes of unemployment :

Causes of unemployment:

Economic hardship in this paper entails a broad category that comprehends diverse difficulties within the economy and the society in general, for instance, unemployment among other factors. That is why employment, as aspiration to establish some functions, must not be the realized functions, and therefore the mentioned causes must be well comprehended. Of these, main causes of unemployment according to this essay include; • Fluctuations in the economic cycles • Advances in technology • Shifts in globalization policies • Changes in the industrial relation policies • Lack of education and skills.

Economic Downturns and Recessions:

A few primary sources of joblessness include the following; Such as economic problems, which can be categorized under recessions. Automatic or minor demands occur for instance when there is low income within the population or when there is high saving rates through the boot period when demand and production is low due to recession. Thus, in an attempt to minimize cost, firms are likely to make decisions that will involve reduction of headcounts hence employ fewer people. For instance, emergence of the projected economical breakdown such as the one experienced in early 2008 global financial crises saw massive unemployment spearheaded by the shutting down of most banks, stager or declining sales in the stock market and consumers’ dismal confidence. However, later on those conditions reduced the spread of exercise in all the sectors of activity although there was development of numerous challenges, for instance, the issue of supply chain, high level of unemployment and a slow growing economy there.

Fluctuations in economic environment are the characteristics of free market place and the crises may happen due to any reason be it financial turmoil, policy failure or policy chocks or some specialty external shocks such as geo natural calamiities and epidemics including but not limited to COVID 19 pandemic. An example is COVID-19 crisis whereby outbreak brought about measures like closure implying change that brought about low economic growth rate, layoffs around the world.

Technological Advancements and Automation:

Employment sectors enjoy major strengths occasioned by automation, innovation and technological advancement which are the largest threats occasioned by the same factors. While they have boosted efficiency and economic growth, they have also cut employment and this is in outsourcing. Automation is a method of doing work in an organization that involves the employment of equipments and tools in order to carry out its tasks and achieve its work goals without the need to involve human resources. In the last several decades, information technology has infused robotics, artificial intelligence, and machine learning and in some ways has created some waves in different areas.

For instance, the nature of employment that was central to assembly line workers in manufacturing companies has been highly deported by robotic systems and automitive systems. In the same regard, the artificial intelligence and other systematic enablers will disrupt the jobs typical of the sector like the ones in the finance, customer relations as well as logistics among others. This can be on the basis of the realized fact that these technologies work when it comes to work and that they are cheaper than employing the human beings.

But yes, with the changes aforesaid it is imperative that with the change, in some sectors, there would be job cuts but there would be also fresh opportunities in a new line of work. The issue here is how workers are fitted for preparing the qualifications that would assist him or her to beginning other positions because of the technologies driven by modernity. It therefore becomes in the best interest of policy makers and other corporate personalities to seek to know the best strategies towards reversing of the impacts of automation on employment.

Outsourcing and Globalization:

Outsourcing and globalization forces have been incorporated into the picture has been a big player towards the direction of labor Market regarding Demography; it has lead to increase unemployment in one area as it creates it in the other area. Outsourcing as a process then represents the employment of other people or other company or companies, to manage some or all the business activities or services which they can offer at cheaper charges as compared to the local employees or companies or at least from a different location. The history of Globalization which is often defined as a process of development flying to interaction and cooperation in the sense of economic globalization in the world countries in recent years.

As outsourcing is promising to the contracting firms, and evidenced by favorable effects such as decrease in cost, increase in efficiency, outsourcing has negative impacts on the domestic employment outsourcing on the domestic economy. For instance, there is eradicating of manufacture employment in retail coupled with auto industries of first world nations like USA and Europe to second and third world nations such as China and India respectively. Such a transition has cause negative multiplier effect to some industries and HU high unemployment rates to those who relied on such sorts of establishments.

Firstly, it has also impacted on the improvement of cut throat competition in job markets in the following ways. In its argument, the group of the organised labour identified that the employers in the developed countries are likely to entice members with deregulation and cheap human capital from these areas. However, globalisation could be also used the same convenient term to broaden the potential markets and define the conditions for employment generation in technologies, financial services and etc.

Changes in Industry and Market demand :

It is therefore crucial to understand the fact that within individual economies, change is almost always a constant and hence industries along with market demands are always in a state of constant change. There could be changes in consumer tendencies the formation of new industries and technology or other factors may alter the demand in the market and bring about a new born industry. It has a potential for creating structural unemployment and therefore create a worker who is a misfit to the requirements of the marketplace.

For example due to some environmental policies such as use of efficient renewable power sources and shift of power usage lifecycle among others, the use of coal in most of the industrialized nations is now coming under pressure. Having read this passage I can identify the following key points: People involved in fascinating related coals and ancillary employment are jobless because the skills gained for mining coal are not transferable to modern and related professions like green energy or IT.

Furthermore, the is not insulated from such change especially when the rise of the internet occurs. These pressures affect the physical stores more frequently that compels its shut down, which ends up in job losses. The employees in these sectors need to be trained and to develop themselves into next generation jobs that can be applicable in internet sales and transportation professions.

Education and Skills Mismatch:

The level of unemployment can therefore be expounded by several factors and some of them are as follows; lack of adequate skills possessed by the worker and adequate skills required by the employer. Such situations may occur due to such factors as technological transformation, change in industry requirements or poor education and training.

While it will be mentioned and discussed in detail, the education systems fail to possess what it takes to synchronize with the market. Because of this, graduates may find that their qualifications will not meet the demands of the job market thus causing them to be underemployed or unemployed. For instance, there may be a time when the country is producing many graduates with humanities, social sciences, arts and education when actually what the colleges need are technologically inclined graduates, engineers and health wise folks.

Third, innovation needs fast skill development because changes in technology are unrelenting, and the workforce has to ensure they are market-relevant. On this account, the idea of lifetime learning and CPD (Continuing Professional Development) should be desirable in order to reduce the skills shortage. So much still has to be done while the solution pertains to active cooperation and partnership between governmental establishments, educational institutions, and employers which are to create and deliver unobtrusive and unobtrusive systems of education and training in order to suit the demands of the current environments.

Thanks for reading my article