Scribd
Upload
22 views1 page

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

Cyclical unemployment arises from fluctuations in trade and business profits, leading to changes in employment levels. Industrial unemployment is driven by factors such as rural-urban migration, industry losses, and competition, while technological unemployment results from automation and mechanization reducing the need for human labor. Although technological advancements have improved material comfort and increased consumption, they have also reduced economic security by displacing workers.

Uploaded by

Saba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
22 views1 page

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

Cyclical unemployment arises from fluctuations in trade and business profits, leading to changes in employment levels. Industrial unemployment is driven by factors such as rural-urban migration, industry losses, and competition, while technological unemployment results from automation and mechanization reducing the need for human labor. Although technological advancements have improved material comfort and increased consumption, they have also reduced economic security by displacing workers.

Uploaded by

Saba
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 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.

You might also like