What are the Causes Of Unemployment?

 

Causes Of Unemployment 

 

There are various Cause Of Unemployment.Such As: 

1. High Interest rates:The cost of borrowing  increases due to the increase in bank interest rates .Companies unable to bear at the increased debt cut their employee's salaries or laid  them off. As a ,result employees may become Unemployed.
2. Population Increases:When the preparation of the country increases the number of people who need jobs in that country increases ,but the number of unemployment also increases due to the fact that it is not possible to employ all the population of the country.
3. Technological Advancement and lack of Skills:Companies want to use advanced technology to reduce their human resource recruitment costs and they want to get more benefits from using advanced technology .many times it is seen that the employees cannot adapt themselves to the advanced technology.

4.Underdeveloped labor market:This case mostly applies to developing countries. People of this country usually work like fishing farming and hunting.