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Unemployment - Coggle Diagram

- - - - occurs when real wages are kept above the market-clearing wage rate, leading to a surplus of labour supplied.
    - - is when people who work in seasonal jobs become unemployed when demand for labor decreases. This typically occurs when a specific time of year ends or a new season begins, such as for a holiday or due to weather changes.
    - - occurs because workers lack the requisite job skills or live too far from regions where jobs are available and cannot move closer. Jobs are available, but there is a serious mismatch between what companies need and what workers can offer
    - - is a type of unemployment that occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work.
    - - is the result of voluntary employment transitions an economy. Workers choosing to leave their jobs in search of new ones and workers entering the workforce for the first time are part of frictional unemployment.
- - - - Technological advances
        
        At present, many jobs that used to be done by hand are done with different machines and technologies. New advanced technology replaced low-skilled or unskilled workers in different factories
        
        New technological advances have eliminated less complicated tasks; while at the same time requiring workers to have higher skill levels
      - lack of education or skills for employment
        
        when a person's qualifications are not sufficient to fulfill their job responsibilities
        
        As employers' need for skilled and educated workers increases, employment opportunities for those without a college education decrease, leading to a higher rate of unemployment. (Morgan Drake Eckstein)
        
        These people face difficulties in learning new skills applicable to the job required.
      - the increased population
        
        As the number of people who are looking for jobs is increasing, it is more difficult to arrange jobs for all these huge numbers of workers. In this situation the demand for work will be more than the available occupations
        
        as long as the gap between supply and demand persists, unemployment will continue
      - Increased costs
        
        The rising cost makes it difficult for companies to pay the usual optimal wage for employees or even the minimum wage in some cases. Therefore, employees reject low-wage jobs and leave companies.
  - - - the financial problems that result from prolonged unemployment
        
        Due to loss of income, unemployed people will not be able to earn money to meet their financial obligations. For example, people who do not pay their mortgage or rent will lose their homes and become homeless.
      - Social problems
        
        According to Gary Ottosen and Douglas Thompson, due to increased leisure time and stress, there will be an increase in rates of alcoholism, drug abuse, and domestic violence.
      - Psychological problems
        
        Studies have revealed a relationship between unemployment and a lack of self-esteem and confidence that leads to depression.
        
        there is an increase in anxiety and stress levels leading to psychosomatic illnesses, personal worthlessness and impotence