Unemployment

Question 1

What is unemployment

Answer 1

Unemployment is a symptom of basic social illness
It is described as when an able bodied person is actively looking for employment but is unable to get one at the going wage rate

Question 2

Types of unemployment

Answer 2

• Deficient aggregate demand :this arises from downswing of trade or business cycle characterized by a general depression
• frictional unemployment : this is unemployment caused by economic frictions such as changes of demand or supply,invention of new machinery etc
• seasonal unemployment: this is unemployment resulting from seasonal changes
• residual unemployment :this type occurs when persons have either mental or physical deficiencies
• disguised unemployment this is when some people are employed but grossly underutilized

Question 3

Causes of unemployment

Answer 3

• World wide economic depression
• premature retrenchment and retirement
• rising population
• activities of multinational corporations
• underutilization of government revenue
• downfall in foreign exchange earnings
• rural-urban migration

Question 4

Effects of unemployment

Answer 4

• Brain drain
• increase in social vices and crimes
• fall in national output
• high dependency ratio
• fall in standard of living my best life
• political instability
• low investment