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Caselet On Unemployment

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Economics
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Saudi electronic university
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Caselet On Unemployment
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Caselet On Unemployment
Q1. Unemployment refers to a condition where there are employable people or
individuals within the society or community, but due to unavoidable circumstances, such
individuals are unemployed. Being one of the factors that affect living standards, every
government takes various measures to contaminate its increase. There are multiple causes of
unemployment; for example, some include increased technology changes and structural change
within the economy, which mostly occur due to mismatch of skills in the labor market and
financial crisis. Additionally, a high unemployment rate can also result from the global recession,
occupational immobility, and even high-interest rates (Clark, & Lepinteur, 2019).
Based on personal opinion concerning macroeconomics principles by Mankiw (2011),
technological upgradation has a significant effect on any industry, whereby it causes a high
unemployment rate. With the introduction and use of technology, various organizations across
the industries have experienced better performance or a suitable production scale. That is
because, through technology, much of human labor has been replaced with machines. Machines
do perform work with minimal errors compared to human endeavor. However, the use of devices
causes the rate of unemployment to be on the rise. For instance, in a manufacturing company, a
machine can replace various employees by doing their work. One individual, a machine operator,
will undertake the operations, thereby rendering those employees jobless.
Q2. Longer-term changes in the economy mostly cause structural unemployment. One
such change is the current Coronavirus pandemic issue, which has negatively affected the global
economy. As a result, the epidemic has caused a high unemployment rate across the industries;
however, there are specific industries, like those in KSA, have managed to contain the
pandemic's effect in the sense that they have limited the rate of unemployment.

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1 Caselet On Unemployment Author name Institutional affiliation Course number and name Instructor name Assignment due date 2 Caselet On Unemployment Q1. Unemployment refers to a condition where there are employable people or individuals within the society or community, but due to unavoidable circumstances, such individuals are unemployed. Being one of the factors that affect living standards, every government takes various measures to contaminate its increase. There are multiple causes of unemployment; for example, some include increased technology changes and structural change within the economy, which mostly occur due to mismatch of skills in the labor market and financial crisis. Additionally, a high unemployment rate can also result from the global recession, occupational immobility, and even high-interest rates (Clark, & Lepinteur, 2019). Based on personal opinion concerning macroeconomics principles by Mankiw (2011), technological upgradation has a significant effect on any industry, whereby it causes a high unemployment rate. With the introduction and use of technology, various organizations across the industries have experienced better performance or a suitable producti ...
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