Cause of unemployment

One cause of unemployment may be downswings in the trade cycle, i.e. periods of recession. Another explanation of wide-scale unemployment refers to 1 employment; structural unemployment arises from longer-term changes in the economy, affecting 2 industries, regions and occupations. Structural unemployment often explains regional unemployment. Some regions of the UK such as Central Scotland and the North-West have higher rates of unemployment because the 3 heavy industries which 4 there have gone into decline as they are 5 by cheaper imports from abroad. The new high-tech industries based on new technologies tend to be based in the South-East and along particular growth corridors.