TYPES AND CAUSES OF UNEMPLOYMENT

INTRODUCTION

As the founder of Mindbank.com.ng – Africa’s No 1 opportunity website, I have been opportune to help lots of people get out of unemployment. People call and send mails every time seeking assistance about their issue of been a graduate without job or source of income which has caused a whole lot of trauma for them and their family members.

This brought about the desire to transform lives by writing this book together to elucidate what it means to be unemployed, types of unemployment and how to overcome unemployment in this century. I have also taken time to write about the must have and don’t on a resume as this is one key factor to you getting a job soon.

If you’re one of the recently unemployed, I feel for you. I’ve been there.

It’s a scary thought to realize you just cashed your last paycheck and don’t know where the next will be coming from. But I am assuring you right now that you will survive. As a young man growing up, I had hopes like every other person but was unemployed for a year. So I have been there, I understand the pains and trauma that comes with been unemployed.

I know surviving unemployment is difficult since it affects people deeply, damaging them both mentally and physically in severe ways. And that means diseases that won’t get better with the continuation of this situation repeating over and over again. The effects of unemployment in people’s life causes serious damage their being, physically, mentally and in my social life (because it seriously affects their family as well). So it is not surviving, but a slow death  if not solved on time.

Quick definition of unemployment

A person is considered to be unemployed if he currently doesn’t have a job and is actively searching for one. When we look at the unemployment rate, we consider someone who is actively seeking a job, otherwise, they are not counted in the labor force.

More specifically according to the Bureau of Labor Statistics actively seeking or someone who has “actively looked for work in the prior 4 weeks, and is currently available for work.” Some examples of activities include submitting resumes or filling out applications, or placing or answering job advertisements.

 TYPES AND CAUSES OF UNEMPLOYMENT:

I’m joining the two together because it is easier to understand the causes of unemployment on the type.

  1. Seasonal unemployment – when a company has to hire extra workers for the holiday shopping rush. Like Amazon hires thousands of warehouse workers to help ship products during the holiday season. Firms try to retain workers but since realistically only needs them temporarily so it can’t be avoided.
  2. Frictional unemployment – people who are in between jobs. This could be caused because employees have quit or have been laid off.
  3. Cyclical Unemployment – more people are employed when the economy is booming and more people are unemployed when there is a recession. There isn’t a high demand for goods and services so companies can’t afford to hire workers during a recession.
  4. Structural Unemployment – people who are unemployed because their job no longer exists either because of globalization or technology. Example: the jobs of tellers changed when the ATM was introduced.

  POSSIBLE CAUSES OF UNEMPLOYMENT

There are a lot of reasons for unemployed, but i can try to summarize it into 5 points:

  1. One reason for unemployed is voluntary. Some of the unemployed have saved enough money so they can quit unfulfilling jobs. They have the luxury to search until they find just the right opportunity.
  2. The second cause is when workers must move for unrelated reasons. They are unemployed until they find a position in the new town.
  3. The third reason is when new workers enter the workforce. That includes students who graduate from high school, college or any higher degree program. They look for a job that fits their new skills and qualifications.
  4. The fourth reason is when job seekers re-enter the workforce. These are people who went through a period in their lives when they stopped looking for work. They could have stopped working to raise children, get married or care for elderly relatives.
  5. One of the causes of unemployment is that many young people go into a challenging situation unprepared. This is a primary reason for youth unemployment.

Empowering children and young people is one way of stopping this and I have invested a lot in ensuring this happens – I’ve seen the fruits over many years.

Depression and Suicide, Job Search and CV

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