Essay On Unemployment Rate

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How can the rate of unemployment affect the economy of a country? Unemployment is the state of not having a job. It tells the total number of people who do not have jobs in a particular place or area. According to Stephen Simpson (2011) unemployment is universally recognized as a bad thing. Stephen Simpson also said that a certain level of unemployment is really natural and it cannot be erased, if the level of unemployment is elevated or higher it will impose significant costs on the individual, the society and the country. The worse part of unemployment is when most of the costs are of the dead loss variety where there are no offsetting gains to the costs that everyone must bear. Stated on (The effects of the unemployment on society and…show more content…
According to Tejvan Pettinger, (2015) occupational immobility, geographical immobility, technological change and structural change in the economy are some of the reasons why is the employment rate very high. Occupational immobility, the first reason why the unemployment rate is very high, tackles that one person only works for one job or expertise, that the expertise that they want is the only job fixed for them. On the other hand, geographical immobility refers to the location of the work or job you desire, there is a conflict on the location of the job, it could be hard in finding a suitable accommodation for you and your family. Another factor that causes unemployment is technological change. Technological change affects if the company or job relies on the technology more than the labour of an employee. The last factor that causes high rate of employment is the structural change in the economy. Employment change in the economy depends on the economy, let’s say for example that your expertise is working for a wine company but the wine industry is not that high this year, it means that your desired job cannot acquire you and it will result to

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