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problems caused due to unemployment

 problems caused by unemployment  

BY SHAMBHWEE BAHAL

AND WHAT CAN BE THE SOLUTIONS FOR UNEMPLOYEMENT .

SO BEFORE GOING WITH THIS 

LETS UNDERSTAND THAT WHAT IS UNEMPLOYEMENT 



👉Unemployment is a term referring to individuals who are employable and actively seeking a job but are unable to find a job. Usually measured by the unemployment rate, which is dividing the number of unemployed people by the total number of people in the workforce, unemployment serves as one of the indicators.

👉official definition of unemployment—people who are jobless, actively seeking work, and available to take a job, as discussed above. The official unemployment rate for the nation is the number of unemployed as a percentage of the labor force (the sum of the employed and unemployed)

NOW FROM HERE THE QUESTION ARRISES THAT , 

WHO IS AN UNEMPLOYED PERSON?

According to the International Labour Organization (ILO) definition, an unemployed person is a person aged 15 or over:

  • without a job during a given week;
  • available to start a job within the next two weeks;
  • actively having sought employment at some time during the last four weeks or having already found a job that starts within the next three months.
FORMULA FOR CALCULATING THE RATE OF UNEMPLOYEMENT



SO BASICALLY THIS IS THE FORMULA FOR CALCULATING THE PERCENTAGE OF UNEMPLOYMENT.

AS THE CAUSES , COMPONENTS , TYPES AND RESULTS OF UNEMPLOYMENT ALREADY DISCUSSED IN OTHER BLOGS .

SO NOW WE'LL SEE THE PROBLEMS AND SOLUTIONS OF UNEMPLOYMENT.
Unemployment means a person willing to work but unable to find a qualified job. Our country is facing many problems but one of the serious problem is of unemployment. Many graduates, doctors, engineers, scientist are unemployed or working underemployed. Due to unemployment we are wasting our country’s human resource. 

The unemployed rate in between age group 15- 29 has been increased since 2009-2010. According to the Global Employment Trends 2014 the unemployment rate has raised to 3.8%, last year it was 3.7%. The International Labour Organisation (ILO) has said in the recent report that India has shown rise in the unemployment in the last two years.

If the problem of unemployment is solved it will help in development of the country. With Population of1.20 billion in our country the unemployment rate is increasing day by day. The problem of unemployment is rising but still many industries are facing the problem of skilled candidate for their company. There is a boom of software companies, Outsourcing companies in India, but still facing the problem of unemployment. 

Reasons of Unemployment
There are employment opportunities in India, but the rising population problem creates the unemployment. If the population grows in the same rate the next generation will face more problems of unemployment. If there is vacancy for 1 position 100 or 1000 apply for the position and only one gets the job and others remain unemployed
  1. Inflation
  2. Indians don’t take jobs which are below their grades. Many find it difficult to work at the below qualification level job.
  3. Low wages or salary below the market rate.
  4. Many big industries look for the skilled candidate only, for their company.
  5. Recession
  6. Many Employers give preference to the experienced candidates only and not the fresher.
  7. Not enough or new jobs: As per the experience & analysis from Get Sarkai Naukri, number of new government jobs is decreasing every year. Government is not able to create enough jobs keeping in mind the Indian population.
  8. Slow business expansion
  9. Advanced Technology: Earlier for a task hundreds or thousand people were required to do a work but now due to the advanced technology only one person can do many people’s work. With the advanced technology companies are hiring few persons to operate the machine. Give a command on computer and the work is done this has cut off the employment of many.
  10. Corruption: In Government sector and in some private sector people get the job by giving the bribe. Even though the candidate is not that qualified but if he gives the bribe he gets the job. So to get a government job give a bribe.The qualified candidate remains unemployed as no money to give the bribe. 






ECONOMIC COST OF UNEMPLOYMENT
The economic and social costs of unemployment include. Personal costs to unemployed (lost income, loss of sense of value, lower on-the-job training) Costs to government (lost tax revenue and higher benefit spending) Costs to society in general (social problems, alienation, lost GDP).

  • Loss of earnings to the unemployed. Unemployment is one of the biggest causes of poverty in the UK. Prolonged periods of unemployment can push households into debt and increase rates of relative poverty.
  • Potential homelessness. Loss of income can leave people without sufficient income to meet housing costs. Rises in unemployment often exacerbate the rates of homelessness. (BBC)
  • Harms future prospects. Those who are unemployed will find it more difficult to get work in the future (this is known as the hysteresis effect)
  • Lost human capital. If people are out of work, they miss out on ‘on the job training’ This is a vital component of human capital and labour skills; high rates of unemployment can reduce labour productivity. If someone is out of work for two years, they miss out on the latest working practices and trends. Being unemployed can also affect the confidence of the unemployed and they become less employable in the future.

Unemployment and depression/mental health

  • Stress and health problems of being unemployed. Amongst studies of unemployed men, signs of depression, mental anxiety, and health problems are noticeably higher. (Effects of unemployment on health (US Library of Health) According to a study by Gallup, “About one in five Americans who have been unemployed for a year or more say they currently have or are being treated for depression — almost double the rate among those who have been unemployed for five weeks or less.”
  • Another study found that common outcomes of unemployment include depression, substance abuse, admissions to psychiatric hospitals, death by suicide, and violence. (1)

Cost of unemployment to Government

  • Increased government borrowing. Higher unemployment will cause a fall in tax revenue because there are fewer people paying income tax and also spending less (hence lower VAT). Also, the government will have to spend more on unemployment and related benefits. The government doesn’t just pay unemployment benefit, but a family who has unemployment will be more likely to receive housing benefit and income support. One study shows that the cost to the Exchequer for one person being unemployed is £6,243 a year in benefits and lost tax revenue. (Independent)

Costs of unemployment to society

  • Lower GDP for the economy. High unemployment indicates the economy is operating below full capacity and is inefficient; this will lead to lower output and incomes. The unemployed are also unable to purchase as many goods, so will contribute to lower spending and lower output. A rise in unemployment can cause a negative multiplier effect.
  • Increase in social problems. Areas of high unemployment (especially youth unemployment) tend to have more crime and vandalism. It can lead to alienation and difficulties in integrating young unemployed people into society.
  • Political instability. The period of mass unemployment in the 1930s led to social unrest. In Germany, an unemployment rate of 6 million was an important factor in the rise of Hitler and the Nazi party.


 WE WILL DISCUSS ABOUT THE  SOLUTIONS AND EFFECTS OF UNEMPLOYMENT IN OUR NEXT BLOG.





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