20 Universal Causes of Unemployment In Every Country

Learn about the main causes of unemployment in any country and how they can impact the economy and society.When someone becomes unemployed, then there is no income or funds that he obtains. In fact, the needs of life and living expenses must still be met, so that person will try to meet his needs in any way, one of which is committing a crime.Unemployment can also be interpreted as a situation when someone does not have a job. Unemployment is a group of the workforce that has not done activities that can generate money.

Unemployment can have a negative impact on the person himself as well as on society or the surrounding environment. This is due to reduced job opportunities that can be caused by economic downturns, decreased self-potential, loss of work skills, decreased income tax and decreased levels of community welfare.

Causes of Unemployment In Every Country.

Causes of Unemployment In Every Country.Causes of Unemployment In Every Country.

In general, there are several factors that cause unemployment, some of these causes are as follows:

The size of the workforce is not balanced with job opportunities

The first cause can also be said when the number of workers with the number of jobs is not balanced. Many people who have graduated and become bachelors and high school graduates / vocational high schools or junior high schools who are ready to work have the same opportunity to get a job according to their abilities. However, the number of people who are ready to work must compete fiercely, because the number of jobs available in the country is not much. So that it causes unemployment.

The community or citizens do not have high skills and have a low level of education.

When applying for a job for a certain position, of course the company will include requirements that must be met by the job applicant. For example, applicants must be at least high school graduates and attach proof in the form of a diploma or have special skills

Therefore, if a job applicant does not have special skills or does not meet the requirements submitted by the company, the applicant will certainly be eliminated from the position. So that people who want to find work must meet the skills and education level requirements submitted by the company.

One of the skills that many companies are looking for is interpersonal skills, which are very necessary in building relationships between individuals, communities, organizations, and also businesses, which you can hone through the book INTERPERSONAL SKILLS: Personal Development with Integrity and Enjoyable Collaboration.

 There is technological progress that replaces humans

The third cause of unemployment is technological progress. In some cases, technological progress certainly has a good impact on humans, technological progress aims to make things easier for humans, but it turns out that technological progress can also have a bad impact, where the role of humans is replaced by machines so that job opportunities are getting smaller.

Increasingly advanced technology can replace humans who previously carried out production activities manually, but machines can replace human power and make work easier and cheaper.

The workforce in the regions and in the cities is not utilized equally.

The fourth cause of unemployment is related to the second cause of unemployment. Because companies that are certainly have quite high requirements and standards when recruiting employees, so that residents who live in the city also adjust to this by adding skills and having a high education.

Unlike the workforce in the village, villagers are sometimes not given much attention and there are few jobs in the village. Most villagers choose to become farmers or work on other people’s land, but workers such as farmers and others are not utilized better. This causes unemployment.

Expectations are too high for the workforce

In addition to not having skills and low education levels, companies sometimes set requirements that are too difficult and expect workers to have high skills. The high expectations of companies for these workers have increased unemployment and caused unemployment.

Global market competition

Many foreign companies have established their companies in Indonesia, which of course can open up new jobs. Unfortunately, most foreign companies that are established in Indonesia prefer to recruit workers from abroad as well. So that global competition that occurs in the country itself is getting tighter and narrows the opportunities for citizens to get jobs and causes unemployment.

Geographical Immobility

The cause of unemployment is due to geographic immobility refers to the difficulty of moving areas to get a job. Sometimes less developed areas and domiciles far from employment become obstacles for them to achieve their dreams.The limited funds to try their luck outside the region can also be a serious problem related to unemployment rates in Indonesia. Therefore, equalizing employment opportunities will be very necessary.

Causes of Structural Unemployment

Changes in economic structure also have an impact on the causes of unemployment. These structural changes drive the need for new skills to adapt to market conditions and dynamics. Thus, when the economic sector shifts from agriculture to industry, it will cause workers in the agricultural sector to be forced to become unemployed.

Poverty

Unemployment causes poverty and vice versa, poverty can cause unemployment. Why?This is because poor citizens or residents usually do not have many opportunities to get higher education, such as up to college level. Even so, of course, the government has tried so that every citizen gets enough education through financing and providing scholarships for people in need.

Suggested Measures to Tackle Unemployment Problem

To overcome the problem of unemployment is an up hill task. It can be tackled provided a number of measures are taken simultaneously. Some, most important, of them are of the following nature.

  1. Growth rate of the population must be minimized Government should make serious efforts to reduce the rapidly rising population growth rate which, at the moment, is the highest one in the world. This measure will greatly help in lessening the pressure from the supply side on the labour market.
  2. Establishment of small-scale and cottage industries should be encouraged: Establishment of small-scale and cottage industries in backward areas of the country should be encouraged by way of extending tax holidays, subsidy on industrial inputs and providing necessary infrastructural facilities. Besides, liberal credit facilities should be made available to these industries. This step will definitely increase employment potential.
  • Induction of self-employment schemes be made: Induction of self-employment schemes like Youth Investment Promotion Society can help to some respectable extent in reducing the number of unemployment of educated persons iv) Vocational professional and training facilities should be promoted to their maximum: The number of such vocational, professional and training institutions should be increased and their standard of education and training be promoted to their maximum. Skilled labour will definitely help in reducing rate of unemployment to a great extent.
  1. v) Construction industry should be encouraged. The construction of houses and roads should be encouraged in private sector. This objective can be achieved through treating construction activities as an industry. This step will help in cre­ating more job opportunities.
  2. vi) Agro and allied industries should be encouraged: To solve the problem of unemployment encouragement of agro and allied industries can do a lot. For this purpose these industries should be provided necessary required technical and credit facilities.

vii) A rational labour policy must be implemented: The implementation of a rotational labour policy can also help in solving unemployment problem to some reasonable extent. This type of policy will help in maintaining industrial peace and as a result of that adequate employment opportunities will take place.

viii) Appropriate monetary and fiscal policies must be followed: Implementation of appropriate monetary and fiscal policies can also help in mobilizing productive resources and thereby creating sufficient employment opportunities.

  1. ix) Quality of labour should be upgraded. The severity of unemployment problem can also be lessened through upgrading of quality of labour. This can be done mainly by way of development of human resources. The objective of human resources development can be achieved by providing adequate medical, educational and vocational facilities.

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