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Effect of unemployment as a societal issue
Effects of unemployment in the economy
Effect of unemployment as a societal issue
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Unemployment is a macroeconomic factor that is pertinent to an extensive economy at a regional level. Therefore it affects a large population rather than a few select individuals. Unemployment does not only have social costs, but economic costs too. The ILO, International Labour organization, defines unemployment as, ''People of working age, who are without work, but available for work and actively seeking employment.'' Therefore implying that it is a state of an individual looking for a job but not having one. Unemployment is one of the key indicators in determining the economic stability of a country; hence governments, businesses and consumers closely monitor it. There are numerous aspects that might lead to unemployment such as labour market conflicts and recessions in the economy. There are two main types of unemployment, which can be focused on, seasonal and cyclical unemployment. Seasonal unemployment occurs when a person is unemployed or their profession is not in demand during a particular season. On the contrary, cyclical unemployment occurs when there is less demand for goods and services in the market so consequently supply needs to be decreased. There are a multitudinous number of both economic and social difficulties associated with unemployment. One fundamental reason why the government particularly stresses on reducing unemployment levels is as a result it poses a great cost on the economy. Not only does it affect the economy, but also it poses a great threat towards the living standards of the unemployed people itself. This could lead to many receiving less or no income based on whether or not they receive unemployment welfare benefits from the government. Reduction in income, would lead to a less disposable inc... ... middle of paper ... ...roblem for governments. Social costs such as increase in criminal activities, depression, suicide, criminal activities lead to other economic costs such as fall in consumption levels and the country’s economic growth slows down. Also, large- scale migration in certain areas of a country might pose a threat to its inhabitants, though it might prove to be beneficial for firms in the long run as they will be able to hire more efficient and competitive workers. However, there can't be zero unemployment in any economy because once an economy reaches full capacity, workers will have to be laid off due to several reasons, such as poor resource allocation, jeopardizing of demand and supply cycle, etc. Therefore it is essential to have a small amount of unemployment in an economy, though higher rates of unemployment will prove to be a threat to society and economy.
The interviewee of this information is Casandra, who is an African American woman in her late thirties. She has been my apartment neighbor for the past two years, and ever since I have known her, she has at least experienced one period of unemployment herself. Although, she told me that she has been on and off work throughout her adult life; however, we discussed the latest experience of her unemployment which according to her, lasted from May 2016 to November 2016. Her unemployment is more likely to be a structural unemployment, since she doesn’t own a college degree or any formal training for a specific job market. Because of a family tragedy, Cassandra left her part time job as a server in a restaurant for a week.
Unemployment occurs when a person who is actively searching for employment is unable to find work or defined as a situation where someone of working age is not able to get a job but would like to be in full time employment. The most often mention measure of unemployment is the unemployment rate. Unemployment rate is the percentage workforce who are unemployed and are looking for a paid job or measures the percentage of employable people in a country's workforce who are over the age of 16 and who have either lost their jobs or have unsuccessfully sought jobs in the last month and are still actively seeking work. Unemployment rate is one of the most closely watched statistics. A falling rate, similarly, indicates a growing economy which is usually accompanied by higher inflation rate and may call for increase in interest rates.
This article by Andrew McCathie posted in EarthTimes and titled “European inflation climbs unemployment at 12-year high was posted on Friday July 30 2010. The article reports that food and energy costs have played a critical role in driving up inflation in the 16-member eurozone. The rates of unemployment remained stagnant to its highest level during this time.
A loss of a job also means the loss of socializing with coworkers. "According to psychologists, in terms of stressful events, the loss of a good job ranks only slightly below a divorce or the death of a loved one" (McEachern, 2015, pg. 104). Economist debate that the other consequences of unemployment can have a critical effect on the person 's health than the loss of salary itself. Unemployment has been connected to a larger prevalence of delinquency and to a range of illnesses, including chronic disease, thoughts of suicide and depression. Individuals who do not work have been reported as always sad, but if they find a job, their sadness decreases simultaneously. Even though people may complain about their jobs, they still need their jobs not only to maintain their livelihood, but for their own personal sake. Furthermore, the individual price of unemployment levies a charge on the economy all because fewer goods and services are being manufactured. The ones who are actually eager and capable to work and they are having hard time finding a job; their employment is gone indefinitely. "This lost income and output coupled with the economic, psychological cost of unemployment on the individual and the family are the real costs of unemployment." (McEachern, 2015, pg.
Unemployment is one of the main causes of poverty and economic downturns. The decrease of jobs forces citizens to work longer hours for low pay in harsh conditions. Job creation can be motivated through the free market economy, which allows the individuals to have freedom in creating jobs without government intervention, the growth of immense entrepreneurship will benefit unemployed citizens, and the scarcity of jobs in the free market compared to mixed & planned economies. Citizens will be left unsatisfied if the government controls production, distribution and job creations. The government’s role is to protect citizen’s rights, provide basic needs, advance military support and invest in building roads, bridges, housing etc.
It is crucial for the economy to realize what affects unemployment and who is unemployed due to immoral issues. Across the country, some people tend to be less employed than others. Unemployment isn’t just measured by the number of people who do not have a working status, it can be measured across ages, genders, races, and education. Below,
Workers have been migrating to America since the day it was colonized in search of not only economic opportunities, but a future. At first they were primarily motivated to establish a religious utopia, but quickly shifted their goal towards a capitalistic society. The result of a capitalistic society can cause certain people to succeed, however, the consequences of their greed that led them there is at the expense of others, as evident during the Great Depression; fortunately, there exists people with altruistic motives that believe in moving forward as a nation, rather than as individuals. While economic events such as recessions and depressions can change human values and beliefs by inducing fear and reigniting prejudices, they are unable
Australia Unemployment Rate | 1978-2015 | Data | Chart | Calendar. (n.d.). Retrieved January 27, 2015, from http://www.tradingeconomics.com/australia/unemployment-rate
The unemployed are the people who are registered as willing, able and available for work at the market-clearing wage, but who are unable to find work. Spain’s unemployment situation is also known as cyclical unemployment. Cyclical unemployment arises due to fluctuations in the nation’s business cycle, it can also be referred to as demand deficient unemployment. It occurs when a contraction in private or public spending reduces AD and leads to a fall in national output. A fall in national output can be crucial on an economy as the demand for labour falls and there is downward pressure on wages and prices. Regarding Spain, the government budget cuts therefore explain the rise in unemployment rate over the three month time period. The graph below shows us the situation in Spain.
Unemployment has always been something that Americans have worried about since the great depression in which one in every four people was unemployed. High unemployment has an impact on every one even those whom are still currently employed. For example if the unemployment rate is particular high then even those with jobs get worried. Unemployment is also separated in to distinct categories base on which group is the focus of the study. The categories can be by race, age or location, for example the unemployment rate of those between the age of sixty and sixty-five could be compared those between the ages of thirty and thirty-five. These categories allow economist to see which groups are the best and which groups are worst off. One group particularly bad off is the age group referred to as teenagers. This paper is going to focus on how teenage unemployment affects the economy and what possible solutions there are.
(Rudinger Dornbusch, 2001) Unemployment would cause unemployed people to lose their income and social problems. If the duration of unemployment is long the firms would have loss of output and human capital.
One of the most life changing effects of unemployment is the loss of income. Especially if they are a single parent of if they have a large family to support. Having no money means eventually having no food, no clothes, no shelter, and no car. It also prevents one from doing many things and activities, even though their amount of leisure time has increased. One might not have money to go to the movies, play on sports’ teams, or do any other recreational things. Being unemployed for a long enough time leads to a lot of debt. Any money that has been saved ends up getting spent rather quickly with all of today’s living expenses. Twenty thousand dollars may seem like a lot of money to some people, but with no income that money gets spent before you know it.
Unemployment is the problem experienced by many South Africans due to lack of job opportunities. There are job opportunities in South Africa but most of these job opportunities favour educated and skilled people but it does not favour unskilled and the people who are not educated. Unemployment is a big problem because in other families you find that there’s no one working and some families die of hunger. This is a very devastating situation because other families don’t have money to fulfil their basic needs such as food, shelter, water, clothes and even paying the children’s school fees. Unemployment can also lead to crime, because when people are not employed they come with different ideas to make money even hijacking,
Lower GDP for the economy also one of the consequences of unemployment in current time. High rate of this issue implies the economy is operating below full capacity and inefficient so that it will lead to lower output and incomes. Because people who are searching for their work usually will spend less in purchasing goods and
The purpose of this paper is to understand the effects that unemployment has on the family as a whole. In today’s society being unemployed impacts greatly on almost every aspect of an individual’s life and depending on their personal circumstances, it is likely to impact on other family members lives too.