Question

Identify the four causes of unemployment and state whether or not any of the causes of unemployment affect the market of the iPhone 6 plus.

Answer 1

Unemployment refers to the phenomenon where people in the work force who want to work but do not have a job. It occurs when a person is actively searching for a job but is unable to find work. There are different causes for unemployment.

1) Frictional unemployment: frictional unemployment occurs when employees leave their job to find a better one. This happens due to several reasons. First some of the unemployed have saved enough money which gives them opportunity to quit unfulfilling jobs. Second reason is the entry of new workers into the market.

2) Structural unemployment: Structural unemployment happens because of a long term decline in demand in an industry leading to few jobs. It happens because of a mismatch between labor skills and the requirements of the new job opportunities.

3) Cyclical unemployment: It is involuntary unemployment because of a lack in demand of good & services. Here the number of jobs are lesser than applicants. Low consumer demand is the main cause of cyclical unemployment. This mostly happens in times of recession when firms start downsizing of labor.

4) Technology unemployment: This type of unemployment happens when technology reduces the need for their type of position. Technology displaces workers & creates higher unemployment.

Low consumer demand due to recession in the economy causes unemployment which can also affect the market of iPhone 6 plus. This will reduce the market size of the iPhone 6 plus.