Unemployment

1. Unemployment Reasons for Unemployment

2. Overview of the types • There are many reasons why people become unemployed. • Sometimes it is related to a person’s individual circumstances, e.g. they might be ill or want to stay at home to look after their children. • A lot of the time, however, it can be related to external factors i.e. what is happening outside the control of those affected. • These external factors can be placed into 4 groups:

3. Structural Unemployment • This occurs when the types of industry in a country or area change dramatically, and many people who worked in these industries become unemployed.

4. Seasonal Unemployment • Some jobs only exist or are more common in certain seasons of the year • eg, tourism in the summer, shop work at christmas time, farm work during harvest time etc.

5. Cyclical Unemployment • Every country’s economy goes through good then bad periods or cycles. • During a bad period or recession companies will not be doing as well so they won’t be able to employ as many people. • This leads to higher unemployment.

6. Technological Unemployment • This is when the development of technology such as mechanical machines or computers replaces or changes the jobs available. • Eg, some people who work in banks have lost their jobs because technology like ATM machines and computerised record keeping has meant that we don’t need so many bank workers.

7. Unemployment in Scotland • 30 years ago, industry in Scotland was mostly heavy industry, with many jobs being taken up in mining, steel making, ship building etc. • Since then, Scotland’s industry has completely changed, and a lot of jobs are related to light industry such as electronics, services and tourism. • This change led to unemployment in the 1980s, when a lot of the people employed in heavy industry lost their jobs.

8. Unemployment in Scotland (2) • A lot of Scotland’s new economy is also based around industries such as tourism and agriculture, meaning that many jobs in Scotland are also seasonal. • This particularly affects rural areas which rely more on tourism and agriculture for jobs.

9. Unemployment in Scotland (3) • Another major problem facing Scotland is that many companies are finding it cheaper to move their factories and jobs abroad where wages are lower. • This has been a real problem because Scotland is still trying to attract new industries after the change from heavy industry in the 1980s.

10. Unemployment in Scotland (4) • In 2006 Youngs, a manufacturer of fish products, announced that it was closing a Scampi factory in Annan at a loss of 120 jobs. • They said that it would be cheaper to send the prawns all the way to Thailand to be peeled as wages were lower there. • However the prawns are still packed and distributed from Annan

11. Unemployment in Scotland (5) • Also, technological developments have had a major impact on jobs in Scotland. • Because Scotland relies a lot on the light manufacturing industry, many advances in the technology for making things have meant that machines are replacing jobs.

12. Unemployment in Scotland (6) • The tourism industry in Scotland is also facing difficulties because of technological advances. • Because it is now so cheap to fly abroad, many people prefer to fly to the sunshine than to stay in Scotland where it might not be so warm!

13. Advantages & Disadvantages Task • You will be given an A4 sheet with advantages and disadvantages all mixed up. • Your task is to sort them out into 2 piles on your desk. • Copy down any 2 advantages and 2 disadvantages of new technology.