Question

What is the relationship between population growth and unemployment as identified in the causes?

Options

• Population growth always decreases unemployment

• There is no relationship between population growth and unemployment

• Rapid population growth increases the labour force faster than job creation, leading to higher unemployment rates

• Population growth only affects rural unemployment

Answer 1

Population growth is identified as a major cause of unemployment because it increases the size of the labour force. When population grows faster than the economy can create new jobs, unemployment rises. The rate of job creation must match or exceed the rate at which new workers enter the labour market for unemployment to remain stable. If job growth lags behind population growth, surplus labour results, leading to both open unemployment and underemployment as competition for available jobs intensifies.