Factors Contributing  to Unemployment 


A recession is a significant decline in the production, distribution, exchange and consumption of goods and services that goes on for more than a few months; it is visible in the goods used by the a company for business consumption, employment and real income. this happens when firms fail to produce and distribute a lot of outcome or returns in the business or when the demand of the certain good or product fails, the firm or business cuts back its costs thus not hiring new labour or retrenching current labour this by its self causes and leads to unemployment .

According to the most recent data from the Bureau of economic Analysis(2011) …unemployment rates increases whenever the overall economy undergoes recession .

for example According to Riley(2009) Nigeria whose export revenue declined following a 70% fall of crude oil prices , a sharp fall in domestic share prices which made funding investment tougher , both which contributed to a depression of a naira by 20%bwhich worsened their trade , increased the costs of servicing foreign debt and increased price of imported goods.

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Thus this caused unemployement because firms were no longer able to pay salaries of people working and some were retrenched fin ECOBANK.


Government pensions are paid to those eligible , or over retirement age .so people who are employed by the government tend not to retire on the jobs because of the stipulation regarding unemployment. People do not have jobs because of the age that people retire at , in Lesotho retirement is at the age of sixty-five(65) so those who have been graduating for the past years do not have jobs to go to .

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when government personnel does not retire whenever they feel unfit to continue they cause unemployment. Ismail(2017)assets that growth in graduate unemployment is rising and wastes scarce human capital and is detrimental to the economy in the long run , meaning that if people retire on an early age they will give a chance to others to get employed . for example the teachers act 1994 does not allow teachers to retire when they want they retire only if they above 55to 65 or when someone is very sick and the illness is likely permanent which rarely happens.


One needs money or any asset being machinery or anything that can be used in starting a business, people may have the brains or ideas of starting the business but there is a lack means of bringing the plan to life being the capital hence causing people to lose the opportunity of being self employed thus continuing to be unemployed or this may or could have created the job opportunity for those outside the business plan or strategy only if there was capital because when starting a business more than one person is needed hence the availability of employment. Also in developing countries there are no projects or investments in physical capital which generate jobs because of the lack of capital therefore no one gets a chance at work.

For example in Lesotho there could be many projects but the lack of capital to invest becomes un obstacles for instance helping and investting in Basotho agricultural projects by helping tose who rear livestock that there is more in livestock than counting how many bred in that year thus helping them by creating jobs for others when they begin to rear them for money


The number of births may have increased over the last couple of years this maybe because of the increasing number of the unemployed thus having babies and expanding their families because of having nothing to do, thus increasing the population. According to the Lesotho statistics there is a population growth of about 1.33% from 2007 to 2017 this by its self shows that if more children are born then more people are going educated hence unemployment for the larger portion of the society in support of this; the education statistics report of 2009 shows the increase of number of graduates over the period of 3 years showing that the increase of population results to increase of the learned hence absence of jobs(unemployment)


Most people do not want to work any other job than the white collar job being the kind of work that confines personnel in offices or cubicles this may be because of better salaries they offer or the kind and nature of the work they do or engage in being that they do not get dirty hence this type of job offers better value of an individuals in the society meaning that an individual is more respected and taken as an important part of society. So people prefer and want white collar jobs because they require skill that they may have acquired in long years of studying and the qualifications they now possess after completing a certain level of education .so people do not want to do jobs that are not going to put them up in the social ladder or jobs they believe they are not worthy of them .so people would rather be unemployed than be s gardeners or a farmers because of the preference of position they will acquire or be in life. Therefore they esteem that those kinds of jobs are not fit for a person with certificates and mostly high qualifications, so people would rather wait forever still unemployed.

For example a person who just graduate from NATIONAL UNIVERSITY OF LESOTHO(NUL) with his or her masters in social work gets a job offer to be a part-time domestic worker in the urban areas then denying the job only because of the fact that it does not entail what he or she studied for hence staying unemployed


Agricultural jobs are not seen as important or deemed worthy of findings in Lesotho because of myths pertaining them, people belief that most people who participate in agricultural activities are uneducated so funding seems to be just a waste of resource therefore robbing people the opportunity to be employed. If the government participated in creating things such as farm loans this would enable individuals to make and create jobs for themselves in a long run. According to krome,Reistad(2014) the starting with a well designed project , identifying and targeting appropriate resources… ,also a clear strategy the necessary people are a means of good result. Therefore if there meetings or programs that not only target urban areas individuals would find themselves busy by participating in projects thus creating employment for themselves and society as whole hence reducing unemployment


According to the education statistics (2009)the Basotho students levels of learning in primary and secondary education are the lowest in southern African region. people in the developing countries are not employed or do not have jobs mainly because of their poor levels of education being that many schools do not let students study practical courses or they dwell more o theoretical subjects rather than putting an actual effort in teaching and helping students do practical subjects hence focusing more on theoretical education. For example here in Lesotho schools which are seen or deemed to be more educating schools focus more on subjects that are theoretical rather than the practical subjects because they are deemed to be less important for example subjects such as mathematics ,physics , chemistry and biology are seen to be proper subjects but subjects such as basic handy work, home economics or agriculture are not seen as subjects that can help students achieve any goal in life thus neglecting the fact that the not dwelling in those subjects may not help in students in the nearer future by imparting skills and knowledge hence providing jobs for them.

People do not want to hire the less educated persons,thus the poor education restricts peoples opportunity and access to correct services moreover according to Cochrane and west(1991) those with lowerskill level are mostly are affected by unemployment situations; therefore the mismatch of too many unskilled person and skilled labour is worsened by the growth of service sectors of economy thus resulting to the skilled being employed and too many unskilled unemployed and thus the larger portion of society unemployed because of the poor education they possess.


The education of developing countries provides purely education of academic knowledge; there are no technical training institutions or any other job oriented courses for people in villages. People in villages ignore any other venues of employment and any choice of occupation. Some people in urban or rural areas choose a particular career because it is the only option left for them or because of lack of knowledge about certain career options and only know courses and careers that are known to everyone, thus leading them to choosing career paths that will not benefit them or those that job opportunities that are scarce or not therein their country.

For example

An individual may be studying in other countries then he or she may for example study geology because his or her results allow them to do that study and come back toothier country of origin then have no job offers because of irrelevant degree acquired because the person did not have knowledge about the consequences either positive or negative of choosing that specific course because o the lack of vocational guidance thus remaining unemployed or if the individual has acquired certain knowledge but not skill to make them both useful because of the unavailability of training facilities in their country which will mean that no business owner or manager will be willing to hire this person because of lack of training or the inability put the skill into practice therefore leading to unemployment, in support of this Foster(1965)…..foster argued that there is no amount of formal technical vocational instruction alone, was going to reduce the volume of unemployment or necessarily have any effect on the rate of economic development thus he proposed developing vocational training outside schools through the auxiliary institutions , with special vocational institutes created in particular cases where their endeavors could be closely matched with on-the-job training to match actual man power requirements with skills training.


This is where people power or drivers of the economy use networks for their own gain being that they provide for members of their families or those that are close to them making them only receivers of benefits hence gaining rather than the society gaining as a whole . Those close to those in power gain in that they would be hired by those in power because of their relations to them rather than hiring people who deserve the opportunity because of their merits thus depriving those who are qualified employment. Blackburn et al., (2011) assets that public sector corruption broadly is defined as the illegal or unauthorized profiteering by public officials , abusing public funds ,fraud claims and direct receipts of bribery that offer substantial gain at the cost of society , hence potentially causing significant damage to socio and economic development

For example

Hiring a person at a certain position like public sectors suchas home affairs because they know relevant people in power rather than hiring those who deserve and qualified for the position offered hence people will remain unemployed because the positions will go to those who are related to the elites or authorities in that sector also there could be money siphoning and embezzlement corruption where siphoning is where the money does not do what it was intended to do if for instance the government officials received a certain lump sum to build per say public facility but those who are in power do what they please with the money and the money no longer does what is as intended to do , thus those who were meant to benefit from it no longer benefit being that people would have been hired then working hence creating jobs but the opportunity is reaped away from them leading to un employment.

There is also the case of embezzlement in corruption , being the swindling or theft of money for example in Lesotho the former police commissioner Molahlehi Letsoepa, according to the arrest warrant , dated 28 September 2017 , Mr. Letsoepa is wanted for contravening section58(1)and section (c) of panel code act 2010 titled the wrongful application of funds. If the former government official did his job funds woud have not been wasted on charging and tracing him but could be used on things such as investment.because that money wasted it may result to economic decline which will lead to unemployment in the country


This plays a bigger part in unemployment problems, many jobs which are done by human labour or hands are now done by the use of technologically advanced machinery,. Therefore causing people to be replaced hence losing their their jobs thus causing unemployment due to the intellect machines have than humans can never have. For example in agricultural farming people used to work in fields by ploughing using cattle or watering using buckets but now cattle is now replaced with tractors and only one person is hired while in cattle ploughing about four would be hired and also sprinklers are now used instead of human labour which causes reduction in job opportunities therefore unemploy

In conclusion un employment is a social problem that cannot be remedied but can at least controlled by finding means to self employ also it does notonly affects the pooror the rich but rather the nation as a whole .

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Factors Contributing  to Unemployment . (2022, Jun 06). Retrieved from https://studymoose.com/factors-contributing-to-unemployment-essay

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