Causes and Consequences of Unemployment in any Country

Causes of Unemployment
1. Lack of Social Amenities: Labor is not comfortable where there are no social amenities and this leads to unemployment
2. Lack of Industrialization: When a country is not industrialized, it has limited employment opportunities as this makes it difficult for the available labor to be fully absorbed
3. High Cost of Education: In most developing countries, the cost of acquiring education is very high and because of this, not many people can afford it and be engaged in skilled jobs and hence unemployment.
4. Overpopulation: This is one of the major causes of unemployment as this is an indication that demand is higher than supply
5. Geographical Immobility of Labor: In some cases, labor finds it very difficult to move from one geographical area to another and this result to unemployment
6. Lack of Development Plans: Some countries do not have a functional development plans and this creates many problems, as the government does not know how to make provision for the labor force.

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Consequences of Unemployment
1. High Rate of Dependency: Unemployment increases the rate of dependency
2. Migration: When People are not engaged in meaningful employment in particular area they would be forced to migrate to other areas in search of jobs
3. Reduction in Investment: Unemployment reduces the propensity to invest in a country
4. Social Problem: Unemployment increases crime rate in any country
5. Threat to Peace and Stability: If people are not employed, there are high tendency for them to engage in activities that will create instability and a breakdown of law and order is very high e.g. A Popular Terrorist group (Boko Haram) in Nigeria terrorizing the Country due to Unemployment

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