Causes of unemployment

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Automation Outsourcing Recessions Economic downturns

Labour market rigidity cuts both ways: firing costs so high that firms stop hiring When an industry migrates the whole supply chain leaves and the workers left behind are not unskilled but stranded How much does a minimum wage increase actually cut hiring for low-skill entry-level jobs Skills mismatch as a macro cause: what the education system produces has little to do with what employers list Payroll taxes and social insurance contributions raise the marginal cost of adding one more employee Offshoring labour-intensive stages of production moves the jobs out along with the work How currency swings and export order books translate into factory hiring and firing How a shortfall in aggregate demand turns into layoffs: orders drop in spring and headcount falls by autumn Austerity suppresses investment and the unemployment rate keeps climbing well after recovery starts Why rate hikes hit construction and durable goods employment before they touch anything else The years when the working-age population surges are the years the unemployment rate gets pushed up

Structural unemployment Unemployment benefits Layoffs Job search Youth unemployment Cyclical unemployment Unemployment rate Unemployment insurance Seasonal unemployment Frictional unemployment