Causes and Consequences of Unemployment Unemployment results from insufficient effective demand for goods and services in an

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答案 Causes and Consequences of Unemployment Unemployment results from insufficient effective demand for goods and services in an economy. / Some believe that structural problems and inefficiencies in the labor market cause unemployment. / Others believe that regulations like minimum wage laws / imposed on the labor market lead to unemployment. / Still some thinkers believe that unemployment is a result of the law of demand and supply / not being applied in case of employing people. / The consequences of unemployment can be as serious as homelessness / due to failure of the unemployed individuals to repay home loans or pay house rents. / Underemployment is one of the serious consequences of unemployment. / On losing jobs, people are forced to take up jobs / that aren’t fit for their skills, experience and educational qualification. / The other major consequence of unemployment / is anxiety in the minds of the unemployed people. / Unemployed individuals become pessimistic about life / and may have to face psychological problems resulting from mental stress.

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