Question

What are the principal economic causes of unemployment?

Answer 1

The principle economic causes of unemployment are describrd as follows:-

1) Slow Economic growth:- In Underdeveloped countries slow economic growth fais to provide employment opportunities.

2) Increasing population:- Constant increasing population is big problem in underdeveloped country.

3) Slow growth of industrialisation:- When there is a slow growth of industrialisation in a country, it can not provide enough employment opportunity.

4) Less Savings and Investment:- When in a underdeveloped country, there is inadequete capital,savings as well as investment will be low which can not create employment opportunities

5) Improper Planning: - Improper or deffective planning creates gap between supply and demand for labour and also one of the main reasons of unemployment.

6) There may be valuntary unemloyment.

7) Advanced Technology:- When computers and robots replace worker, there is no need of trained workers.

8) Recession in the business cycle creates cyclical unemployment.