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    Cyclical Unemployment: Is Caused Because of The Ups and Downs in Trade

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    Saba

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    Cyclical Unemployment: Is Caused Because of The Ups and Downs in Trade

    Uploaded by

    Saba
    7 views1 page

    Original Title

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    7 views1 page

    Cyclical Unemployment: Is Caused Because of The Ups and Downs in Trade

    Uploaded by

    Saba

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    1.

    Cyclical unemployment is caused because of the ups and downs in trade


    and business. When the entrepreneurs earn high profits, they invest them in
    business which increases employment, but when they get less profits or
    suffer from losses or their products remain unsold and pile up, they reduce
    the number of workers in their industries which causes unemployment. A
    boom is generated when investments exceed savings, and similarly a
    depression results when savings exceed investment. This is probably an
    over simplification of the concept of cyclical unemployment but it is still
    basically true.
    2. Industrial unemployment is caused because of a large-scale migration
    of people from rural to urban areas, losses incurred by Industries, slow
    growth of industries, competition with foreign industries, unplanned
    industrialization, defective industrial policies, labour strikes or employer's
    lock-outs, rationalisation, and so on.

    3. Technological unemployment is one caused due to the introduction of


    automation or other technological changes in industry or other work places. It
    is also caused due to the reduction of man power necessary to produce a
    finished article Throughout the course of economic development,
    particularly since the industrial revolution, man has been forced to adjust
    himself to the processes of mechanization.

    An increase in mechanical skills has both its advantages as well as its


    disadvantages Machine production has multiplied the number of
    commodities consumed by average man. This has meant a constantly rising
    standard of material comfort and a concomitant increase in the consumption
    of luxury goods. Certain items which were at one time considered as luxury
    items for one class of people have today become items of necessity for them
    On the other hand, the industry has diminished the average man's economic
    security since every advance in technology has meant a displacement of
    human labour.

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