Causes of Unemployment

Introduction of Causes of unemployment:

There are many causes of unemployment in Pakistan but I want to discuss some major causes of unemployment in Pakistan.  Pakistan is a developing country and Industries working in n Pakistan are not stable. There are also some factors of unemployment due to the lower literacy rate in Pakistan. You will be familiar all causes of unemployment of unemployment after  reading the article. Because we will discuss the all factors of unemployment in Pakistan.

Causes of unemployment

Four major reasons create   Frictional Unemployment this kind of unemployment occurs when an employee wants to replace his/her job for a better opportunity.

The other two reasons generate Structural Unemployment. This kind of unemployment occurs when employees cannot survive in relevant income or skill and the Last cause is due to cyclical unemployment  This kind of unemployment arises when the demand for goods and services decline and employer feel no more requirement of employees.

Frictional Unemployment:

The first cause of frictional unemployment is due voluntarily leaving jobs by employees mean employees leave their job voluntarily because they have better job opportunities rather than the old ones. Many people leave their jobs in the search of better opportunities and in the meantime, they find a job.

  The second cause occurs when an employee wants to relocate from one place to another. They will be unemployed for joining their new job. As discussed above in the frictional stage employees search for a job for better opportunities. When the employee gets the opportunity and time require to join the new job is deemed to be the second main cause of unemployment.Causes of unemployment

The third cause arises when a new workforce arises in the market mean fresh graduates from school, college, or universities come to search for their first job. This cause of unemployment is most common in Pakistan and becoming the most significant cause of unemployment in Pakistan. Because Pakistan’s education system is old concerning some developed countries.

In developed countries, graduates learn the skills during education and can start work after completing their studies. But in Pakistan after getting the degree from universities the graduates don’t learn any skills which becomes the cause of unemployment in Pakistan.

 The fourth cause of unemployment arises when job seekers re-enter the job market after leaving the job, meaning they left their jobs due to personal reasons. This cause is lesser common than prior once. Because this cause is not connected with routine matters, so this doesn’t become the considerable cause of unemployment in Pakistan.

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Structural Unemployment:

This cause of un-employment is neither short-term nor voluntary, these two reasons lead to a long period of unemployment.  The factor behind those kinds of unemployment is due to the replacement of human services with computers.  Most of the workers are required to upgrade their skills to perform duties like computer operators replace the office clerk.

This cause of unemployment in Pakistan occurs in when an organization restructure the system and upgrade according to new technology. Due to changes in structure, many employees can be redundant because they can’t be adjustable in an upgraded system. According to this cause of unemployment, many old or aged employees become unemployed. This factor of unemployment is also considered a significant cause of unemployment in Pakistan due to the structural changes in the company or organization.

Cyclical unemployment:

This type of unemployment occurs when jobs are less than demand.  Cyclical often happen in a recession when the economy of a country falls.  A decrease in consumer demand encourages cyclical unemployment, an example of this kind the financial crisis of the financial year (FY) 2008.

This is also a major cause of unemployment in Pakistan because many graduates are jobless due to lower jobs position in Pakistan. When the demand for Jobs will be lower than the Supplies of Jobs then this will create competition for job searching candidates.

Due to Covid-19, many industries are dormant and a significant number of employees become jobless. The closure of industries becomes a significant cause of unemployment in Pakistan. The Covid-19 has adverse impact on job market. Because due to Corona Virus and lock down many factories closed, which became the significant source of unemployment in all over the world. 

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Conclusion:

Many factors become the causes of unemployment in Pakistan. Because Pakistan is a developing country and the economy of Pakistan is growing. The Covid-19 also have a significant effect on the economy of Pakistan and Job markets of Pakistan.  

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