What are some of the sources of unemployment?

There are many causes of unemployment. First, it takes a while for workers to find a job and it takes time for firms to find adequate workers.

Minimum wages can also increase unemployment. When the wage is forced to be high, more people will want to work, but fewer firms will want to higher workers.

Unions are also a source of unemployment. Unions bargain for higher wages, which increases the supply of workers. But, higher wages also imply that the demand for workers is lower.

Furthermore, efficiency wages can also cause unemployment. Efficiency wages are excessively high wages paid by the firm in order to increase worker productivity. Because the going wage is higher, more workers will want to work than are jobs availabl