Causes of Unemployment
Causes of unemployment are mentioned below:
- The working population’s poor educational background or lack of occupational skills.
- Industries requiring a lot of labor are being negatively impacted by the decline in private investment, especially since demonetization.
- Transitioning between the three sectors is challenging due to the poor productivity in the agriculture sector and a lack of alternative possibilities for agricultural workers.
- Complexities in law and small businesses become unprofitable due to inadequate state support, insufficient market, financial, and infrastructure linkages, and cost and compliance delays.
- Insufficient expansion of infrastructure and insufficient investments in the manufacturing sector limit the secondary industry’s employment prospects.
- Due to a lack of necessary training or skills, a large portion of the country’s workforce works in the informal economy; this information is not included in employment statistics.
- The main reason behind structural unemployment is that the education offered in schools and universities does not meet the demands of the labor market today.
- Regressive social norms that prevent women from taking/continuing employment.
What is Unemployment Rates? List of Highest Unemployment Rate Countries
The unemployment rate is defined as the percentage of people in the workforce who are unemployed. The formula for calculating the unemployment rate is to multiply the total labor force by 100 and divide the number of jobless people by that amount. The national unemployment rates of a large number of countries throughout the world are continuously calculated and recorded by organizations like the World Bank, the International Monetary Fund (IMF), and the Organisation for Economic Co-operation and Development (OECD). The unemployment rate is likely to increase when the economy is struggling and there are few jobs available.
In this article, we will look into the various aspects of unemployment, and the unemployment rate, covering its types, causes, and effects. We will also look into the unemployment rate in India and the list of countries with the highest unemployment rates and discuss some strategies for resolving unemployment issues.
Table of Content
- What is the Unemployment Rate? Formula of Unemployment Rate
- List of Countries with the Highest Unemployment Rate in 2023
- Unemployment Rate in India
- What is Unemployment?
- Types of Unemployment
- Causes of Unemployment
- Effects of Unemployment
- Strategies for Resolving Unemployment Issues
- Conclusion – Unemployment Rates
- UPSC Prelims Previous Year’s Questions on Unemployment Rates
- FAQs on Types, Causes and Effects Unemployment Rates