Common Causes of Unemployment and How to Solve It

Unemployment

Unemployment can be very problematic, especially if you have responsibilities like a mortgage and children. If one doesn’t have savings, then unexpected unemployment can be absolutely devastating, and even life-changing, resulting in a loss of home.

Unfortunately because of the pandemic, millions are facing unemployment. Many more have chosen unemployment, rather than work menial repetitive jobs. This is in part due to the rollout of government stimulus cheques. There are myriad other reasons why one might find oneself unemployed.

This article will cover some of the reasons, and explain how unemployment can be overcome:

Demand Deficient Unemployment

Demand deficient unemployment is usually a result of the economy functioning below full capacity. This usually occurs when entering an economic slump, or a recession. Businesses will be selling fewer products and will need to manufacture less, and so, they will not need to hold onto extra staff. Global recessions also lead to large scale redundancies. During a recession unemployment tends to rise massively, as businesses fire lots of staff members in order to preserve themselves.

Frictional Unemployment

Frictional unemployment is caused by the time that it takes people to change between jobs, for example, a university graduate finding [or changing work]. Frictional unemployment is not something to worry about, because there is always some degree of frictional unemployment taking places. Every person at least once in their lives will experience frictional unemployment.

Structural Unemployment

Structural unemployment is a very common catalyst for unemployment. It can be broken down into several subcategories:

  • Geographical immobility refers to the difficulty some people face having to move regions to get a job. It can be very hard as a parent having to relocate your children and partner just to find work.
  • Occupational immobility refers to the problems many face when they are required to learn new skills in their industry and adjust to changing technologies. If a person cannot catch up with the times, then it will be difficult for them to retain their job.
  • Technological change refers to the development and advancement of technology, and the implementation of Artificial Intelligence. This is particularly relevant today, when millions are being made unemployed and being replaced with machines and new technologies.
  • Structural economic change is another cause for unemployment. Workers who are skilled in a specific field may struggle to find work in another. For example, a thatcher may struggle to find work in IT if thatching were to no longer be in demand.

Voluntary Unemployment

Voluntary unemployment is something that we are seeing in Europe and the Americas right now. This is due, as we mentioned in this article’s introduction, to the implementation of stimulus checks and government-subsidized benefits. While these things were implemented to counter the economic devastation caused by the COVID-19 pandemic, they have yet to be removed, and so, people don’t actually need to work at this time. This has led to widespread unemployment, particularly in the hospitality industry. Certain businesses have started offering wages twice what they previously offered just to incentivize returning to work to people. Simply, voluntary unemployment occurs when people would rather remain unemployed than work.

Finding Employment

Networking With Friends

A good way to find work is to network with your friends or people with whom you have previously worked. Explain to these people that you are seeking employment and would like their help. Unless these people work in highly specialised fields, they should be able to find you a job at some level. The only disadvantage to finding work with friends is that if you fail to complete routine tasks to your manager’s satisfaction, then it will reflect poorly upon your friend. This could ultimately result in them losing their job, or at the very least status in the organisation.

Contacting Companies

Another way to find work is to contact companies directly and ask them if they are hiring. Myriad fast-food restaurants are looking for employees at the moment. Some are even tripling wages. This is because most people are not particularly enthused with the idea of serving people who could be carrying viruses and infections at the moment. You can contact companies directly by email, through their website, or even in person. Walking into a business with your resume and handing it to them personally is a great way to show confidence and determination, two qualities that businesses love.

Job Search Platforms

Job search platforms are another great way to find work. These platforms can be difficult to succeed on, however, because there tends to be lots of competition on them. Millions of people could be using a platform at one time. Even so, if you are skilled and have a good resume, this shouldn’t be a problem for you. You can tailor your job search on these platforms, so that only jobs relevant to you show.

savingsJob Fairs

Job fairs are another great way to meet employers. At these fairs, you might not necessarily find work, but you will find out what employers want from you. Attending job fairs is definitely something to consider if you are new to a particular industry or just haven’t worked for a long time. They will give you an opportunity to hear from big corporations and find out what it is that they are looking for in their future staff. Job fairs take place year round, although because of the pandemic many have moved online.

Social Media

If you have a large social media presence then you can leverage that to find work. Not only can you ask your followers if they know of any staff vacancies, but you can also advertise your skills to them, and even, find work as an influencer. Influencers are social media personalities who are sponsored by brands to advertise their products. Some influencers make millions of dollars. It’s definitely something to try your hand at if you have a knack for social media. There are lots of different niches for you to try as an influencer, from gaming to fashion.

Unemployment can be very hard to deal with, especially if one has commitments. If you follow this article’s advice then you should be able to find work, in addition to understanding what the root causes of unemployment are.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.