Question

Define unemployment and explain the causes for unemployment.

Hint:

Unemployment occurs when people who are willing and able to work cannot find jobs due to limited opportunities or lack of skills.

Answer 1

Unemployment is a situation in which people who are able and willing to work at the prevailing wage rate cannot find suitable employment. It is considered a serious economic and social problem because it reduces income levels and affects economic growth.

One of the major causes of unemployment is rapid population growth. When the population increases faster than the creation of employment opportunities, a large number of people remain unemployed.

In many developing countries, industries are not sufficiently developed to absorb the growing labour force. This leads to fewer employment opportunities outside agriculture.

A large proportion of the population depends on agriculture, which often provides only seasonal employment. As a result, many workers remain unemployed during the off-season, leading to seasonal and disguised unemployment.

Many people lack proper education, training, and technical skills required for modern jobs. This mismatch between available skills and job requirements is another major cause of unemployment.