Causes of unemployment?

Question

Causes of unemployment?

Answer 1

Inflation, high interest rates, low demand, x factors like terrorist attacks, natural disasters, bad fiscal policy. These are the main causes.

Answer 2

Not enough live-able wage jobs that would allow a person to have one job to pay the normal bills each month.  Minimum wage is fine for someone living at home, but is not acceptable to working adults.  Unfortunately employers are reducing their full time forces to part time to avoid having to provide benefits.  Good paying jobs are hard to come by.  kids used to mow lawns, deliver newspapers and babysit to get extra money, college kids used to work as box persons at supermarkets, bus persons at restaurants or waitress.  Or they would work at burger king or McDonald's.  Now all those jobs are being taken by working adults who have to have at least two jobs

Answer 3

Natural cycles.

Excessive regulation.

Tax increases.

Disasters.

Answer 4

-Economic growth:

The labor market is a derived demand market – that is the demand for labor will be determined by the level of goods and services sold in an economy. a decline in AD will cause an increase in unemployment

-The stance of macro-economic policies:

Expansionary would cause an increase in economic activity, causing unemployment to drop.

Tightening policies will cause a slowdown in growth and increase in unemployment.

-Constraints on economic growth

High economic growth will cause: a decrease in unemployment, but will also put a lot of pressure on inflation, which is a bigger concern for governments.

Rising participation rate

Structural change

Technological change

Productivity