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

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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