Rapid changes in technology
Recessions
Inflation
Disability
Fluctuating business cycles
Changes in tastes as well as alterations in the climatic conditions. This may in turn lead to decline in demand for certain services as well as products.
Attitude towards employers
Willingness to work
Perception of employees
Employee＊s values
Discriminating factors in workplace (may include discrimination on the basis of age, class, ethnicity, color and race).
Ability to look for employment
These causes of unemployment can be divided into two broad categories disequilibrium and equilibrium unemployment.
Types of Unemployment [3]
Frictional or Search Unemployment: Unemployment due to the natural friction of the economy, represented by qualified Individuals, who change jobs, with transferable skills.
For example: A first-time job seeker may lack of skills or information for finding the company that has the job available and suitable for him or her. As a result this person does not take other work, temporarily holding out for the better-paying job.
Structural Unemployment: Unemployment due to structural changes in the economy that eliminate some jobs and create others for which the unemployed are unqualified.
For example: In the technological revolution, computers may have eliminated jobs, but they also opened up new positions for those who have the skills to operate the computers.
Classical or Real Wage Unemployment: is a form of disequilibrium unemployment that occurs when real wages for jobs are forced above the market clearing level.
