Why is it important for employers and employees to understand unemployment?

Firstly, I hope you aren't trying to get a free answer to copy down for an essay/thesis, therefore I will provide hints instead:
Employees:
1) Upgrade skills for the new and rising economy and future
2) Learn the hardships of life and adapt to change and improve
Employers:
1) Cost is too high; therefore must retrench workers
2) Workers don't have the sufficient skills

Thus, employees need to understand themselves first; their skills and knowledge, before upgrading them and keeping a job. Employers need to retrench their workers without the sufficient skills-set due to company financial problems