Unemployment is not only a circumstance that occurs all of a sudden. However, it can be predictable and caused intentionally by the employed people itself. Thus, it is wrong to say that controlling unemployment is not in your hands.
You cannot deny the fact that jobless circumstances can be dealt easily or difficult to handle sometimes. It majorly depends on the reasons that cause you unemployment. Before you go ahead in the search for a solution, it is better to know the causes of unemployment and then take a decision accordingly.
Causes of Unemployment
There are 3 major causes responsible for unemployment. First is frictional unemployment. Second is structural unemployment. Third is cyclical unemployment.
1. Frictional Unemployment
This type of unemployment is when a person leaves his or her job to find the better one. This occurs in a healthy economy where a person has saved enough money and has the luxury to search the better earning opportunity. Some of the common examples of these types of unemployment include seasonal unemployment, relocation and term unemployment.
2. Structural Unemployment
Structural unemployment occurs when your skills or income requirement no longer suit the job available. In short, this is caused by the mismatch between the skills you can offer and the skills demanded by the organisation. For instance, industrial reorganisation and technological change result in structural unemployment.
3. Cyclical Unemployment
Cyclical unemployment happens when you lose your job due to the downturn in the business cycle. This kind of unemployment relates to the regular or cyclical ups and downs in the growth and the production of the company. Low consumer demand causes large-scale cyclical unemployment.
In today’s time, it is not right to say that unemployment is unpredictable. The above-stated causes are enough to describe that unemployment can be pre-planned in some cases. However, the loans for unemployed people in the UK provide the desired solution, whether emergency crops up all of a sudden or it is caused purposely.https://www.everyoneloan.co.uk/loans/loans-for-unemployed/
Effect on Economy
Not all the cases of joblessness create unemployment but affect the nation’s economy negatively. Joblessness often causes instability and becomes a trouble for the strength of the UK’s economy. Not only the unemployment is a major hindrance but underemployment also makes it tough to make ends meet.
What is the Escape?
There is no doubt that money is the only thing required to escape from the hurdles. Whether it is frictional, structural or cyclical unemployment that you are struggling with, borrowing funds is the only way out of the crisis. You just understand different types of unemployment to choose the suitable loan product.
Today, the lenders are also working hard to tackle the joblessness that creates unemployment to strengthen the economy of the UK. Now, you can easily deal with the financial shortfall and get the employment back to offer your dear ones a satisfied financial life. Unemployment increases the cost of borrowing by making the interest rates high. But, you can talk to your lender to negotiate on price to get the desired outcome from the loans.