Why is it difficult to attain full employment in an economy?
- There is inadequate information about where jobs are; where jobs are advertised in newspapers most unemployed people fail to get this information because they cannot afford the papers
- Shortage of co-operant factors i.e. there could be availability of one factor ad less or scarcity of the other
- High population growth rate that does not match with employment creation. This makes proper planning for distribution of jobs very difficult.
- Rural-urban migration. This leads to urban unemployment creating gaps in rural areas.
- Seasonal employment where people are employed in one season and not in another such planting, weeding and harvesting in agriculture
- Immobility of factors of production. For example there exist plenty of land in some areas and lacking in some areas. Labour immobility may be due to family ties.
- Restriction of entry into certain jobs by trade unions e.g. due to age limit, language and experience
- Large private sector which tend to use less labour to maximize profit.
- Limited market for commodities produced which does not encourage expansion of businesses to use up labour.
- Employment of expatriates in preference to local people
- Lack necessary skills and education required by the job market
- Lack of value addition limiting job creation.
- Lack of value addition limiting job creation.
- Automation substitute employees
- Some people who are capable to work choose not to particularly if unemployment benefits are available.
CATEGORIES Economics
TAGS Dr. Bbosa Science
