Factors Contributing to Unemployment Issues

Lec: 28 - SFSS - SP 05c Causes of unemployment

There are so many reasons and factors which have contributed in unemployment rate in the country. Among these factors the main reasons are discussed below. the raise of the

LACK OF INVESTMENT Another factor contributing to the problem of unemployment is the lack of investments. Lack of investments result in the closing down of business firms and industries, increasing unemployment in the country. 3

Bad Educational System /Gap between Theoretical and practical work One of the major cause of unemployment is the our poor educational system which does not provide enough practical work for the students due to which they do not have any experience in their concerned field. As a result they can not qualify for a suitable job. 4

LACK OF TRAINING CENTERS Another reason for unemployment is the lack of training and vocational centers. These are meant to provide training and skills to those who can not get education but by learning technical skills can apply for a job to secure their future. 5

LACK OF INDUSTRIES/ SICK INDUSTRIES Lack of industries is a major factor that is contributing in the reduction of employment opportunities especially for the laborers. Similarly inactive / sick industries (that are existing but not in a state of producing goods) are also a cause of unemployment in the country. The employed workers are losing their jobs because of the inactive state of such industries. 6

PROBLEMS IN AGRICULTURE SECTOR As Pakistan is an agricultural economy and 70% of our labor force is engaged in agriculture, the problems in agriculture sector is also a reason for unemployment. Now a days generally tube wells are used for irrigation purpose, and due to non availability of electricity and fuel, the tube wells can not be operated properly. Similarly modern equipment's / machinery is not easily available. 7

MIGRATION Migration is another cause of unemployment. As the number of candidates is more than the available opportunities, which makes it difficult for the employers to accommodate such a big number of employees. For example in Pakistan, Due to the influx of Afghan refugees, the local people are not getting proper opportunities to get jobs. 8

DESIRE FOR STANDARD JOB (Higher Expectation) OR GOVERNMENT JOB Due to the desire for a standard job i.e. having much higher expectations than what one deserves, some people do not even apply for other jobs. Similarly, some people do not apply for private jobs because they long for government jobs due to which they remain unemployed. 9

POOR LAW AND ORDER SITUATION / INSECURITY The poor law and order situation in the country is discouraging the investors to invest their capital, consequently the industries and firms are being closed. There is a feeling of insecurity due to which nobody is willing to take risk and invest their money. 10

In Addition to the above discussed factors the following factors also plays an important role in increasing the unemployment graph in the country. Illiteracy Disliking of Profession / Forced Profession Population Growth Improper utilization of Resources Smuggling Political Instability Natural Causes Sudden Changes/Accident

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