14 Causes of structural unemployment
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- Changes in fashions , tastes or reduction in demand for example when tiled houses replace iron roofed houses, the makers of iron sheets become unemployed.
- Changes in production techniques which reduce the demand for labour for example use of capital intensive technology where machines replace labour.
- Exhaustion of supply of major natural resources for example mining which makes miners unemployed e.g. exhaustion of copper from Kilembe mine
- Rural urban migration due to regional imbalance between rural and urban areas.
- Political instability
- High population growth rates in the structure of the economy.
- Lack of co-operant factors of production for example capital.
- Laying off of workers involuntarily and permanently due to government policy
- Technological changes which make the economy to demand for capital intensive then labour intensive technology.
- Labour immobility where labour cannot move from a declining industry to growing industry due to lack of adequate skills.
- Poor management that causes collapse of industries and production units
- 12.Structural rigidities in economy such as breakdown of the main transport systems.
- Seasonal unemployment especially in agriculture.
- Company reallocation. For example, if a region only has one airport and that airport moves to a new area, the employees may become structurally unemployed.
CATEGORIES Economics
TAGS Dr. Bbosa Science
