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Main causes of Unemployment

Andrea Mejia Leyton


The causes of unemployment are mainly political and economic instability in our country that causes havoc in the population and the lack of investment in job-creating industries to society. The crisis we are facing is one of the main factors that generate staff layoffs due to lack of labor and resources to continue paying wages to employees, as well as poor financial and strategic planning, capital flight to other countries, closure of companies that generate jobs, etc.. The population explosion is another important factor in this phenomenon, which causes the numbers of people requiring work are far greater opportunities and vacancies that are available, also inflation, lack of preparation and experience points are important causes of this problem because there is increasing attrition in schools which in turn generates that people do not have the education and skills required by businesses, industries, etc.. to qualify stalls offering.The costs of unemployment for society include increased poverty, crime, political instability, mental health problems, and diminished issue in economics. A low rate of unemployment helps prevent mass poverty and violence generally. Lacking a job often means lacking social contact as well, a purpose for many hours of the day, lack of self-esteem, stress and mental illness, and of course, the inability to pay bills and to purchase both necessities and luxuries. The latter is especially serious for those with family obligations, debts, and medical costs, where the availability of health insurance is often linked to perform a job. So if there is less comsumption, companies gets lets revenues so it has to cut costs and reduce employees. Increasing unemployment also raises the crime rate, the suicide rate, and encourages bad health. The unemployed often end up on welfare programs that tap such as food stamps or accumulating debt, both formal to banks and informal debt to friends and relatives. Higher transfer payments from the government in the form of stamps welfare and food decrease spending on productive economic goods. Finally, another factor that mark the rising rates of unemployment in Mexico is the high level of corruption that is in the country, generating a misuse of power in order to make a profit themselves, resulting in the effect that there are financial crimes such as robberies important than good could be used to create jobs, but yet, usually used for illicit business.

We live in a country that is in daily political war, but the government is trying to fix little by little the problems of unemployment that exist nowadays. He is creating national business, helping little farmers to grow together, and so many things that is helping our country to get over this especific type of problem. So we have to go trough the rules that now are in favor of the employee rather than the enterprise with all the laws we have now.