Causes of Unemployment
It is the main problem in economic and personal field which is occurred due to 2 reasons which will include
- Production and income loss
- Human capital loss
Production and income lost- If there is loss in the job it will further brings loss in production along with income loss. These kinds of losses are bearable by a person, who makes them as a fighting process. If there is unemployment safety net is created for person but they will not replace their earnings which has been lost.
If production is less you will come across with lower consumption along with low capital investment, through which the standard of living decreases both in present and future.
Human capital loss –If there is unemployment, people will be suffering from the main problem of capital loss