Why the Rate of Unemployment is increasing?

certain rules and regulations are set in employment law by the authorities to avoid rise in unemployment. There are various reasons that explain the reasons for rise in unemployment. Explanations below are valid and no single can completely explain the rise in unemployment.


Between the 1950s and the 1990s, there was a enormous increment in the development of capital around the globe because of the trade liberation i.e. Minimizing the barriers against international trade. Trade has enabled nations to misuse their natural assets. For example, the developing countries are rich in low and unskilled labor as can deliver labor related products, for example, textiles goods are less expensive than the developed Western world.

The modern world becomes benefits by importing the less price labor against the exchange of its exports of goods and facilities generated by skilled labor and capital. Developed nations are compulsory to reduce their making of products in home-based like fabrics and the requirement has moved from less-skilled and manual jobs towards higher-skilled occupations. Though, the figure of jobs has improved, and unemployment has resulted because workers and companies do not adjust quickly enough to the varying demand for labour, products and relevant services.


The boost in technology has also served to modify the demand for labour. Machinery has substituted the human in some sections or professions but have also produced request for new services and have led to an increase in the number of jobs and in employment opportunities. Jointly, globalization and technology have contributed enough to a net growth in employment. Both factors are considered as the driving forces of growing world prosperity, but unfortunately faced a decline in the demand for lower and unskilled labor. Modification in the demand for labor will continue.

Other explanations of rises unemployment contain:

  1. Trade unions has emerged as power after the implementation of labor law, union power influences the employees to ask for higher level of wages comparative to the production of each worker. This might lead toward the reduction in the demand of labor generating unemployment.
  2. A longstanding high joblessness describes that the number of longstanding unemployed found increase and they became increasingly disconnected from the labor market.
  3. Another reason that makes the employer discourage is the paying of employee’s related taxes and national insurance assistance for their workers.

Preparation and Implementation of Policy for Employability

In this era of modern society majority, people would have found it essential to provide its citizens useful employment chances having development opportunities for long run. In this order the authorities have to play key role in preparation of the framework which supports current market structures and removal of shortcomings or problems in current market Labor lawyers in UAE which can assist you in any legal dispute

Or take help from any law firm like HHS Lawyer and legal consultants. Generally, UAE has very few labors related market regulations.

New policy’s objective is to provide the unemployed person new jobs and concentrate on the people who are suffering from the unemployment issue, mostly young people, u-employed from long term, lone parents and disabled persons. The policy package includes provisions for training to be provided to all participants.

Tom Senkus

About Tom Senkus

Tom Senkus is a traveling freelance journalist that specializes in technology for startups and small businesses aiming to establish a global presence. For more information and his list of services.

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