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People migrate for many different reasons. These reasons can be classified
as economic, social, political or environmental:
lack of services
lack of safety
high crime
crop failure
drought
flooding
poverty
war
Pull factors are the reasons why people move to a particular area. They include:
higher employment
more wealth
better services
good climate
political stability
jobs moved to Mexico. It also occurred once workers in China and India gained the
skills needed by American companies. These are the two causes of structural
unemployment. That's when workers' skills, or income requirements, no longer match
the jobs available.
These are the six causes of natural unemployment. They always occur, even in a
healthy economy. The natural unemployment rate is between 4.7% and 5.8%,
according to the Federal Reserve.
What Causes Cyclical Unemployment?
The seventh cause of unemployment is when the supply of jobs is less than the
demand. That's called demand-deficient unemployment. It's usually created by an
economic downturn. That results in large-scale unemployment.
Consumer demand slows enough that businesses lose too much profit. If they don't
expect sales to pick up anytime soon, they must lay off workers.
That's what happens during the recession phase of the business cycle. That
causes cyclical unemployment. A recent example was the financial crisis of 2008.
Unemployment rose to 25% of the population during the Great Depression of 1929.
Do Minimum Wages Cause Demand-Deficit Unemployment
Occasionally demand-deficit unemployment occurs when wages are too high. That's
one of the arguments against higher minimum wages.It says that businesses have a
fixed cost for labor. When they are forced to pay a higher wage per person, they must
let other workers go. In some price-sensitive industries, that's true. But most other
companies can pass the cost onto their customers. (Source: "Structural/Frictional and
Demand-Deficit Unemployment in Local Labor Markets," National Bureau of
Economic Research, July 1988.)
Not All Causes of Joblessness Create Unemployment
If someone gives up looking for work, on the other hand, they are not counted as
unemployed by the Federal government. If someone retires, goes back to school or
leaves the work force to take care of children or other family members, that is not
unemployment. That's because they no longer look for work. Even if they would
prefer a job, they aren't considered unemployed unless they looked in the past month.
People who have searched in the past year, but not the past month, are called
marginally unemployed. For this reason, some people say the
government undercounts the real unemployment rate.
3. Tension at home: Quarrels and arguments at home front which may lead to
tension and increased numbers of divorces etc.
4. Political issues: Loss of trust in administration and the government which
may lead to political instability
5. Tension over taxes rise: Unemployment also brings up discontent and
frustration amongst the tax paying citizens. In order to meet the demands of
the unemployment fund the government many a times may have to increase
the taxes thus giving way to restlessness amongst the tax paying citizens.
6. Insecurity amongst employees: The prevailing unemployment and the plight
of the unemployed people and their families may create fear and insecurity
even in the currently employed people.
7. Crime and violence: Increase in the rate of crime.
8. Suicide cases: Increase in the rate of suicide attempts and actual suicides as
well.
9. Social outing: Unemployment may bring a decrease in social outings and
interactions with other people, including friends.
10. Stigma: Unemployment brings with more than just no work. It also brings
with it the disgrace that the person has to bear. Nobody likes to be termed as
unemployed.
11. Standard of leaving: In times of unemployment the competition for jobs and
the negotiation power of the individual decreases and thus also the living
standard of people with the salaries packages and income reduced.
12. Employment gaps: To further complicate the situation the longer the
individual is out of job the more difficult it becomes to find one. Employers
find employment gasps as a negative aspect. No one wants to hire a person
who has been out of work for some time even when theres no fault of the
individual per say.
13. Lose of skills usage: The unemployed is not able to put his/her skills to use.
And in a situation where it goes on for too long the person may have to lose
some of his/her skills.
www.statcan.gc.ca/tables-tableaux/sum-som/l01/cst01/labor07aeng.htm