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Unemployment in a developing country generally takes place due to
switch over from one job to another
lack of effective demand
seasonal factors
lack of complementary factors of production
Unemployment in a developing country generally takes place due to lack of complementary factors of production. Unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. Demand deficient unemployment occurs when the economy is below full capacity. For example, in a recession aggregate demand (AD) will fall leading to a decline in output and negative economic growth. With a fall in output firms will employ less workers because they are producing less goods.
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