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What Are The Five Reasons Of The High Unemployment In Developing Countries?

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Chetan Agrawal Profile
Chetan Agrawal answered
Do you ever wonder why developing countries have a high unemployment rate? The reasons are endless but five of them include: Struggling economy, low salary, technology, poor benefits, and laziness on the part of citizens. Indeed, these and more contribute greatly to the growing number of unemployed individuals in a developing country.

It’s a fact that many countries are facing economic problems. They’re affected by recession and they have no choice but to let go of some employees. Many companies have gone bankrupt and left millions of people searching for a new job. Further, it’s very hard for these countries to find investors since most of them invest in highly industrialized countries.

Nobody wants to work for a low salary. Unfortunately, people in developing countries don’t have much choice. Workers have to start by earning minimum wage while there are some who gat paid lesser. Promotion is also hard to come by since companies favor foreigners or those who have higher qualifications.

Technology is another culprit behind the increasing unemployment rate. Computers and machines are taking over people’s jobs. Instead of hiring more employees, they simply buy the latest technological gadgets and hire computer experts to program all the work for them. Further, other employers hire people abroad to work via the internet for a lower rate.

The lack of job opportunities and sufficient benefits also prevent people from getting a job. Aside from their poor salary, they also earn very few benefits. There are even those not covered by health care and have no overtime pay.

One of the obvious reasons for the high unemployment rate is the fact that there are citizens in developing countries that are just too lazy to get a job. Many jump from one job to another while there are some who simply prefer putting up a small business at home or raise animals for a living.

These reasons and more keep countries from growing economically. Unless these are resolved, developing countries will find it very challenging to get to the top.
Anonymous Profile
Anonymous answered
The reasons are inter-related.

#1: Corrupt and/or inefficient government officials and agencies.

#2: Lack of industrial and commercial interest in investing money etc. In the country. Mainly due to reason #1.

#3: Lack of educational opportunities. Again see reason #1. Most dictators/ president for life/etc. Don't want an educated population. They might get the idea that the strongman in power isn't the best thing for their country after all.

#4: Impending civil war or revolution again see reason #1

#5: Some countries have laws that forbid foreign persons or corporations from owning business' or manufacturing facilities within their borders. Despite ways around this, Bribery etc., the governments who pass laws like this have a tendency to not stay bought and sooner or later nationalize the foreign investments in an (usually unsuccessful) attempt to take all the profits and benefits for themselves. Again see reason #1.

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