Involuntary unemployment and causes

Involuntary unemployment and causes

Involuntary unemployment is a situation where labor is willing and able to work at the ongoing wage rate but cannot find a job.

Causes of involuntary unemployment

  • high population growth
  • immobility of labour
  • technological advancement
  • inappropriate manpower planning mechanism
  • socio-cultural variable
  • rural-urban migration
  • insufficient skill
  • seasonal factors
  • imperfection in labor market
  • political instability
  • mental and physical inability
  • inflation
  • inadequate supply of co-operant factors
  • Retrenchment
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