Causation


 * __CAUSATION:__**

Why do people become unemployed?

In a modern economy unemployment has a variety of causes. Some of them relate to the general level of economic activity, others are the result of a failure of the labour market in an economy to work optimally. []
 * causes of unemployment **

There are many different possible causes of unemployment, and unfortunately for governments, it is never easy to identify which is the most important and what to do about it. The causes of unemployment can be split into two main types: The first cause of unemployment (**demand-side**) is simply a lack of //aggregate demand//. When there isn't enough demand employers will not need as many workers, and so //demand-deficient unemployment// results. [|Keynesian] economists in particular focus on this cause. Unemployment caused by **supply-side** factors results from imperfections in the labour market. A perfect labour market will always clear and all those looking for work will be working - supply will equal demand. However, if the market doesn't clear properly there may be unemployment. This may happen because wages don't fall properly to clear the market. This is shown in the diagram below: []
 * 1) **Demand-side**
 * 2) **Supply-side**

In the set up of a modern market economy, there are many factors, which contribute to unemployment. Causes of unemployment are varied and it may be due to the following factors:


 * Rapid changes in technology
 * Recessions
 * Inflation
 * Disability
 * Undulating business cycles
 * Changes in tastes as well as alterations in the climatic conditions. This may in turn lead to decline in demand for certain services as well as products.
 * Attitude towards employers
 * Willingness to work
 * Perception of employees
 * Employee values
 * Discriminating factors in the place of work (may include discrimination on the basis of age, class, ethnicity, color and race).
 * Ability to look for employment

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//There// are a variety of different causes of unemployment and a disagreement on which causes are most important. One cause is the economy because like it has been very affected in a negative way companies have been broken so companies end and all the workers of it looses their job. Another cause is taht companies can loose a lot of money because of a bad deal( or whatever) so there is not enough money to pay to all os the workers of the company so they have to fired some people. Other cause is that some companies get very modern and buy a machine of highest quality which is a system that do the work of the workers but faster and better so workers are not needed any more.