Why unemployment is getting higher and higher, from an economic point of view, is caused by three reasons:
The first reason is insufficient demand. If demand is insufficient, companies will not recruit more workers, and even if there are jobs, they will be taken away by more people.
The second reason is oversupply.
The third reason is technological progress.
Insufficient demand
The economy is a complex system, people, finance, and materials are the three most important elements in economic development, and each element has its needs relative to other factors.
The problem of insufficient demand is a common phenomenon in macroeconomics, and the more the economy develops, the more goods and services we need, which is insufficient demand. For example, a piece of clothing that we look ordinary today, when it is produced, we will find that the demand for this dress is too great. For example, many people like to buy a house, but we are thinking about a question: why are more and more people buying houses? The answer is that people need houses, but not much.
Therefore, we have to look at what stage the economy has developed, and there will be a problem at this stage: insufficient demand. When demand is insufficient, even if there are jobs, more people will be taken away.
Oversupply
Oversupply is also a reason for the increase in unemployment. With the advancement of science and technology, enterprises continue to carry out technological innovation, so that product upgrading is getting faster and faster. This leads to oversupply and companies that are unable to meet new demand. If companies are unable to meet the new demand, they will have to lay off workers and increase unemployment.
For example, Apple's mobile phone now accounts for more than half of the global market. However, because the Apple mobile phone is updated too quickly, resulting in oversupply in the market, some new models of Apple mobile phones have been discontinued, so at this time can only let workers lay off and increase unemployment.
Technological progress
The impact of technological progress on employment, mainly through the replacement of manual labor by machines, has reduced the demand for labor and created more jobs. In modern society, a person can have multiple jobs at the same time, which means that in traditional society a person must have one job. In modern society, a person may only work on one job at a time, which means that people can work in several different occupations at the same time. Therefore, people may need many jobs to make ends meet. Advances in modern technology have given people the opportunity to choose a job instead of having to do a job they don't like.
Impact on the economy
1. Technological advances have caused some people to lose jobs, which also means that new jobs will increase.
2. Rising unemployment will affect social stability.
3. Since the government does not have enough funds to increase unemployment benefits, there may be some people in society who use violence and other forms to obtain additional income.
4. Due to the uncertainty of the labor market, companies will be more cautious when recruiting and firing employees.
5. Due to the existence of unemployment benefits, when applying for unemployment benefits, some people put more pressure on the employer during the application process, resulting in more people filing for unemployment benefits.
Impact on life
Impact on individuals, unemployment means less income and a lower quality of life. When unemployment is severe, there may be a situation of lack of food and clothing.
Impact on society, unemployment means fewer job opportunities, leading to more competition. In this case, it is bound to reduce work efficiency. In order to survive, some people will take risks and violate the law and commit crimes. In this way, it will lead to an increase in social instability.