Theories of Unemployment

Theories of unemployment related to occupational choice focus on why individuals may struggle to find jobs in their preferred fields. One key idea is that workers may have skills that don’t match job requirements, leading to mismatches in the labor market. Other factors include personal preferences, such as choosing not to relocate for work, or industries that are experiencing decline. Economic conditions, like recessions, can also limit job opportunities, forcing individuals to accept roles outside their chosen occupation. Ultimately, these theories help explain why unemployment can persist even when jobs are available in different sectors.