Question

Which among the following do you think could be the potential causes of unemployment?

• A. Technological advancement
• B. Geographical and occupational immobility
• C. Expansion in output and positive economic growth
• D. Globalisation

Answer 1

Answer: (A), (B), (D)

The correct options are
A Technological advancement
B Geographical and occupational immobility
D Globalisation

Unemployment is a key economic indicator. High employment rates can be symptomatic of a distressed economy. It can be caused by many factors. One such factor is geographical and occupational immobility, ie., workers are unable to move or change jobs across regions and industries respectively. Globalisation has led to increased competition in domestic and international markets. It has led to shifting of patterns of manufature and labour demand oversees leading to job losses domestically. Technological advancement and rapid mechanisation in industries is also a factor of unemployment. An economy in a recession experiences decline in aggregate demand. Some firms will go out of business leading to large scale redundancies and lay-offs, leading to unemployment.