Arguing about Causes and Effects. Causes of Unemployment

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Arguing About Cause and Effects
Attaining economic security means that a person has a stable income or other financial resources to support personal needs. Unemployment means that most people will not have a source of income to support their financial needs. Unemployment affects people who are employed and those that are self-employed. The effects of unemployment are mainly due to the over dependencies on salaries or the sources of income. Thus, it is essential to have a deeper understanding of the causes and effects of unemployment to develop solutions for unemployment. This paper will outline the causes and effects of unemployment and discuss solutions for unemployment.
Causes of Unemployment
The leading cause of unemployment is job loss when a person’ employment is terminated; they lose their income. People can become victims of job loss due to a violation of the workplace guidelines, harsh economic times or other reasons. A company that goes out of business due to stiff competition may also lay-off workers and end contracts with or without benefits (Tatsiramos and Jan 287). When a corporation closes its doors, the only institutions that can ensure the employee’s benefit is the bank or the government, especially if it is a major corporation that has gone out of business. Additionally, an employee may be too sick to perform organization duties and may be replaced by another healthy employee. Either way, a person may lose their jobs and become unemployed due to varying reasons.
Another cause of unemployment is economic recessions. The most recent economic crisis was marked with widespread economic strains across the world. Case in point, increased fuel prices means increased cost of transportation and acquiring raw materials goes up (Tatsiramos and Jan 287). Such price hikes increase the cost of production, and the costs of goods and services go up as well. An economy in ruins means that people will little or no money to spend, and others will hold on to the little money they have. As a consequence, Tatsiramos and Jan note that the rates of consumption for products and services will decrease (293). Further, companies will reduce their production mechanisms by reducing working hours and reducing their workforce; some businesses will cease their operations entirely for fear of running into debts. Laid off employees will increase levels of unemployment, in the society and ultimately the family. Thus, economic problems contribute to increased unemployment levels.
Individuals lose their source of income if their businesses...