Question

Explain the possible causes of unemployment and explain which is responsible for most of the unemployment in your country.(12 mrks)

Answer 1

Unemployment is caused by various reasons that come from both the demand side, or employer, and the supply side, or the worker. Demand-side reductions may be caused by high interest rates, global recession, and financial crisis. From the supply side, frictional unemployment and structural employment play a great role.

The main reason for unemployment in Ukraine is a financial crisis.