Dangerous Treats of Unemployment | 5 Major Causes of Unemployment


Unemployment is one of the severe economic issues the world is confronting nowadays; as time passes this issue becomes worst. People are suffering from unemployment problems everywhere in the world. The novel corona has taken it to its zenith.

The corona crisis has pushed it globally to over 200 million mark in 2022, due to which people are now compromising on the desired careers and do show their back to any job just for the sake of income. Especially, youth is more vulnerable target of this issue.

It can lead a person to mental health and becomes hopeless, leads to depression and anxiety, and sometime even to suicide.

What is Unemployment?

What is Unemployment?

It is the number of people in a state who are looking for jobs, which they fit for, but not getting that. It is a universal problem in the world. There are millions of people who are jobless in the world. The novel corona has created of the worst job crisis after the Great Depression.

The real crisis of the pandemic will be felt later, when it shows their impacts in the coming years, by increasing the poverty as well as widen inequalities. Countries now need to do everything what is in their reach to curb this job crisis turning into social crisis.

Unemployment Ratio in the World

The rate of unemployment in the world increased both in developed and undeveloped countries. The pandemic increased the ratio of unemployment in America, which left 10 million people jobless in the first two weeks. Similarly, the percentage in the United Kingdom is 4.1%. Italy has 9.8%, while France has 8.3% during covid19. As mentioned earlier, undeveloped countries have worst job crisis during the pandemic.

Underdeveloped countries, such as India and Pakistan have high rate during Corona. The former is 7.9% or 35 million people, who are jobless, while the latter is 6.5%. The rate in the countries also aggravate due to over population, because it is difficult for the countries to create vacancies for the citizens in a large scale. In such condition the demand of work will be more than the available resources, as a result it will increase unemployed individuals.

Unemployment increase with each passing day

Causes of Unemployment

There are many cause of unemployment in the world, but we will address the main causes such as follow;


Overpopulation is also a severe problem that has adverse effect on unemployment in the world. As the number of individuals increases who are looking for the job, it is difficult for the government to provide jobs on a large scale to them, consequently, the ratio increases.

In these circumstances the demand for work will be more than the vacant occupations. This will result in increased number of unemployed individuals. It is obvious in third world countries like Pakistan and India.

Changes in Science and Technology

It increases due to the rapid changes in science and technology. The jobs that people were performing are now being done through machines and technology. This advancement in the technology replaced the low or unskilled workers in the factories. Technology has also brought changes in production and made it accurate. It resulted in more unemployed people.

For example, computers have replaced the typewriters, now they have to find another job for them to be employed.

Lack of Education and Jobs Skills

Lack of Education and Jobs Skills

Another reason is a lack of education or job skills. This occurs when a person qualification is insufficient to meet his job responsibilities. A mismatch arises when education is not tailored to the labor market, resulting in structural unemployment. These people have a hard time learning new abilities that are relevant to their jobs, such as computer skills, management, and communication. As a result, it decreases down employment ratio.


Last but not the least; it may be caused by increased prices and inflation. Companies are finding it difficult to give their employees the normal ideal compensation or even the minimum wage in some situations, due to rising costs. As a result, employees reject low-wage positions and abandon businesses. For example, if the price of gasoline or electricity rises, it will inevitably harm enterprises and factories that rely on these energy sources.

Furthermore, due to an economic crisis, industrial decline may need to lower their budgets, resulting in a reduction in the number of employees or the cancellation of some posts, raising unemployment rates. As we have experienced it during Covid19.

Effects of Unemployment

Effects of Unemployment

It has significant consequences. First, there are the financial issues that has increased as a result of extended unemployment. We all know that we can’t buy anything without money; a steady wage allows us to purchase food, clothing, and shelter. Unemployed people will be unable to satisfy their financial responsibilities due to a loss of income.

They will not even pay their home rent and will lose their homes and become homeless. It also limits people from doing a variety of things and participating in other hobbies, such as traveling, which also affect national economy, leads to poverty.

It also causes social problem. When prolonged, it creates stress on the mind and sometimes leads to depression. The stress will also increase alcoholism; drug abuse and domestic violence. Moreover, increased marriage breakdown, divisions and discrimination in society. Suicides rate has also increased, especially among young people.


Which country has most unemployment?

South Africa is the first country by unemployment rate in the world that is 29.2 %.

Which country has the highest employment rate?

Netherlands has the highest employment rate which is 79.2%.

What are third world countries?

The term third world is coined after the cold war. Those countries that are neither aligned with capitalist (America and Europe) nor with the Soviet Union (communist bloc) are called third world countries.

What are the main types of unemployment?

There are mainly four types such as; structural, cyclical, fractional unemployment and institutional.

What is zero unemployment?

Zero unemployment is a term used by economists in a fairly specialized sense to reflect the ratio among the number of individuals who are actively looking for jobs and the figure of jobs available on offer.


In conclusion, Unemployment is a severe social and economic problem that results in a tremendous impact on the whole world. There are many causes of unemployment such as increased population, advancement in technologies, lack of education or skills and rising costs. It has different effects on the society such as, financial, social and psychological problem. Unemployment sabotages people from head to toes.


To counter unemployment, the countries must build factories, companies and industries in order to provide jobs to its citizens. The government also needs to open vocational training center to educate the people about the new trends and soft skills, such as computer and other programs which aligning them to the needs of local and international labor market.

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