Those keen to study economics must have noticed economists using structural unemployment quite often, in reference to the discrepancy between the needs and requirements of the employers and the proficiencies of the personnel. Even though the number of job vacancies may be greater than the number of unemployed individuals, it is not possible for them to own the required skills for the jobs that are available for them. One good example of structural unemployment would be sports institutions. If they were to coach a huge number of basketball players than could get positions for playing, the likeliness of them to get jobs in other fields rises. However, while other fields call for their own set of rules and skills, many of them might not be able to get jobs at all. This makes up for an easy, all-inclusive structural unemployment example. But what is structural unemployment’s key cause? While there are a number of questions surrounding the term, let’s get acquainted with the causes of structural unemployment in the first place, and attempt to answer all the questions.
Causes of Structural Unemployment
Some degree of mismatch between the labor force anatomy, mainly in terms of specialization, location, skills, etc. and the demand of the labor is possible in many cases. Even though, many a time, labor may adjust to the requisites of the economy, US economy for instance, however, consuming a lot of time and energy. This is the phase when he is structurally unemployed.
There are a number of ways by which economic life, generically, and the labor market interact in their own structured manner, for example, by public institutions, with the help of a regulatory framework, and by real and actual usage. One of the prime causes of unemployment that is structured is a result of failure of labor market organizations in defining pay-scale bargaining methods and approaches. What’s more, the persistent change in requirements, resources, and technology within the market economies leads to increased number of jobs in a single sector, while reducing the same in the other. As a result, it is not always possible for workers to shift from where jobs are reducing to places where jobs are available in surplus. The ones structurally unemployed do not take up jobs for long, and hence, it becomes all the more difficult for them to be a part of secure employment. Read more »
Unemployment has a big influence on poverty in South Africa because there is a lot of people that do not work, or are just not trained for a certain job, or they just do not want to work, then there are the people that are trained but can’t find a job because of the unemployment rate in South Africa. That is why there is a lot poverty in South Africa because there are more than half of the citizens that do not work by not working or receiving a income the poverty in South Africa will keep increasing.
Drugs is one of the worst kind of poverty generators because people get hooked to a drug and then can’t stop using it, the person then obviously needs his fix after a while and then goes out and spend all his money on the drugs until the person has no money left and is in no state to work for anyone so the person can’t buy food, clothes or pay rent on his apartment. This problem is very common in allot of people’s lives because there are a lot of people using drugs and it don’t have to be drugs it can also be alcohol, that is why drugs can lead to poverty in South Africa and not only in South Africa but all countries have that problem.< immigrants
Illegal immigrants is a big Problem In South Africa for the citizens because the Illegal immigrants don’t mind working for a minimal wage because there were they come from the had nothing and when they come to South Africa they don’t mind taking those low wage jobs because it is better to get some money then getting none. So the Illegal immigrants take all the jobs that the legal citizens don’t want to take because of the low wage and that is causing a lot of people to have no jobs, no money and that is why Illegal immigrants is such a big influence on poverty in South Africa.
Bad self image
A lot of people are poor because they have a bad self image about them self’s and that tend to give a person a negative viewpoint in life, on one self and achieving something. That I why people with a bad self image don’t have a job because they don’t have self esteem or motivation to do something to make a living and this also influence the poverty in South Africa. Read more »
A series of events in the United States had sparked a vicious recessionary cycle which is commonly referred to as the economic recession of 2007 or financial crisis of 2007. Many people misunderstand the causes that are related to the recessionary cycle that led to high rate of unemployment in the United States. The Bureau of Labor Statics, United States, churns out numbers according to the current population census with the rate of unemployment at about 9% in the June of 2010. The economists have predicted that this exorbitant rate of unemployment to rise from the beginning of 2011. Though the causes of unemployment in the United States have been closely associated with the financial crisis and recession, there are several other factors that have contributed to the same.
In the following paragraphs the different aspects and causes of unemployment in the United States (2009 and 2010 data used) have been discussed from a common man’s point of view. It must be noted that bureaucracy and corporate management may hold different views on the matter.
Financial Crisis of 2007 to 2009
United States President once commented in very harsh words that unemployment and economic crisis was as a result of ‘culture of irresponsibility’. What President Obama implied was the current status of the United States economy. Let us go down to the basics of Alfred Marshall and Adam Smith. A economy with a good GDP is a result of legitimate demand and supply curves, meaning that producers produce and consumers pay for the goods. The total goods that are purchased in the economy is the GDP. However, in the United States, an enormous volume of goods are purchased by credit cards (i.e. money which will be paid at a later date). In May 2010, G.19 report on consumer credit, the Federal Reserve indicated that as of March, $2.45 trillion worth of consumer debt had accumulated, with a circulation of 576.4 million credit cards. This enormous number of ‘credit’ has generated a GDP that is partially ‘artificial’. This unhealthy purchase rate has led to an enormous volume of bad debt and bankruptcy with lenders, credit card companies and consumers suffering losses. This loss bearing spread to all economic entities in the US economy with an enormous number of companies either filing for bankruptcy, or initiating lay offs and job cuts.Read more »