Social And Economic Causes Of Unemployment

An increase in the unemployment rate means that more individuals do not have an income, thus meaning many households suffer reduced disposable funds. This causes a decrease in the level of aggregate demand within the economy and therefore reduces economic growth. This in turn causes a slower circular flow of income, meaning that households may be forced into or past poverty, as a result of the lowered income generated, reducing the living standards and quality of life. The downturn experienced by the economy can also offset many individuals seeing them not wanting to return back to the workforce due to the lack of jobs available, making them long-term unemployed rather than cyclically unemployed, or if the firm initially was promoting structural change, structurally unemployed. Combined with poverty, the aspect of unemployment can lead to other severe mental health issues and illness reaching extremes.

A condition that has existed since the beginning of commercialization, unemployment has been in our history since its monumental recognition in 1929. The Great Depression is really when unemployment became a real issue and its highest peaks where between 1932 and early 1933 when the average rate of unemployment was 24.9%. Fast forward almost 80 years and unemployment is still a political issue whose rate has experienced a roller-coaster ride of highs and lows. Unemployment has many forms, but it is technological unemployment, that is a crisis which if declined will lead to an excellent and a benevolent rise to our nation’s economy.

Unemployment refers to the numbers of people not working and can be measured by the claimant count and labour force survey. There are different types of unemployment and each of them requires different policies to overcome them.

Unemployment is a problem faced by all nations only that it varies in degree (Teichova & Matis, 2003). Reduction in its levels promotes economic growth and development in any country. There are various types of unemployment which include voluntary unemployment, involuntary unemployment, frictional unemployment, cyclical unemployment, structural unemployment and seasonal unemployment. Voluntary unemployment is where workers willingly leave the jobs they are holding and go to look for better ones. Involuntary unemployment on the other hand is where workers are fired or laid off from their jobs and need to find new ones. Frictional unemployment is where workers take some time before they can secure a job after leaving a certain job. This is a type of unemployment faced by many people since they leave jobs without having already secured new ones. Cyclic unemployment is the type of unemployment that is dependent on economic cycles of recession and boom (Cogley & Sargent 2005). As the economy enters into recession, some companies respond by cutting on the level of production hence laying off workers since they are not in full production. Cyclic unemployment naturally ends during boom. Structural unemployment on the other hand is the type of unemployment where some labor markets have more workers than the total jobs available (Jena, Kandalam & Sun, 2009). Also, it can occur where the

Because most people rely on income generated by “working” to maintain their standard of living, the loss of employment often directly threatens to reduce that standard of living. The purpose of this study is to explore the definition and cause of unemployment, its’ cost, and how it is important

Unemployment has been a major problem that many of the nations find themselves in. United States is not an exception, citizens have complained to the government for lack of job and have demanded for a quick and strategic action to be taken to solve the problem, however unemployment is an issue that cannot be completely solved because of the many aspects that has to be considered by different stakeholders.

Unemployment happens when a person who is effectively looking for work is not able to look for some kind of employment. Unemployment is regularly utilized as wellbeing’s measure of the economy. The most as often as possible referred to measure of unemployment is the unemployment rate. This is the quantity of unemployed persons divided by the quantity of individuals in the work power. The unemployment rate is expressed as a percentage and is calculated as follows:

In the current world, there are many social issues such as vandalism, racism, obesity and prejudice. However, unemployment has become the most histrionic one. Unemployment is both a social and an economic condition. Unemployment is the state where individuals seeking jobs remain un-hired. Unemployment is a global reality where both the developing and developed countries suffer from it. As time goes the condition of unemployment is being worse. Unemployment has become both a social development and a global economic threat. According to the International Labor organization (ILO) report released in 2007, more than one people are working on low wage or are underemployed, as another 178 million is unemployed (Assaad & Roudi-Fahimi, 2007). In 2009 the number of unemployed people increased to 212 million. There are many causes that have contributed to unemployment. Some of the key concerns of unemployment are increase in technological change, population increase, increasing cost of items and lack of education. This essay aims at discussing some of the major causes of unemployment and connects them with certain long lasting effects such as psychological, financial and social problems.

You may ask yourself, what is unemployment? Why is it so important? and how does it affect my everyday life? A common misunderstanding that I have encountered throughout the time of my research of the subject is the difference between the term unemployment which refers to people who are out of a job but are prepared to work and unemployment in the sense of a welfare aid to those who are out of a job. I will be speaking to you today on the definition of unemployment, the types of unemployment, the consequences of unemployment and what can be done about unemployment.

Money is essential to any individual looking to have a decent lifestyle; labor is the avenue through which this is acquired. The economy goes through various fluctuations in activity causing unemployment to fall, rise, or level out. What this creates is the first type of unemployment, known as cyclical; frictional is the second type, caused by a temporary leave (for whatever reason) by the employee, and structural is the third type, varying with the economic changes in demand. The absence of unemployment at its maximum level is termed full employment, another version of unemployment. The term encompassing the sum of the frictional, structural, and, yet another type of unemployment, surplus unemployment is that of the natural rate of

Unemployment is a very important problem that it is not only an economic issue, but it is related to the social and political issues. Increasing the level of unemployment will decrease the level of Keynes’ effective demand that is going to increase the investors’ uncertainty and less investments will take place. As a result, the economy as a whole will move from recession to depression and the unemployment is dramatically increasing. On the other hand, unemployment has a direct impact on society in a variety of negative ways. A lot of studies found that the level of crimes and drug users is high among unemployment citizens. The unemployed may consider crime as an alternative path to earn money. Finally, the high level of unemployment, in most cases, could lead to instability in the political system due to protest against the existing political system. In conclusion, unemployment is a complex issue that needs a lot of work to solve it.

According to Balami (2006) unemployment is conceptualized as a situation wherein a worker is or workers are involuntarily out of work. This means that workers are willing and able to work but cannot find any work.

Unemployment takes place when a subject who is actively incisive for employment but impotent to find work. Unemployment is frequently seen as a measurement of the economies overall health. When calculating to number of unemployed people in a district is primarily perceived as an ‘unemployment rate’. An unemployment rate is the amount of unemployed subjects divided by the amount of people in the labour force in an area.

Employment is an activity or the like that occupies a person 's time. Unemployment on the other hand can be simply defined as when a person in search of “employment” or “job” is unable to find employment or work. It is also said to be when an individual of working age seeking a job is unable to obtain any. Unemployment is a criteria used to diagnose the health of a country’s economy health. It is a big challenge the country Nigeria has battled with for years now and has maintained a rising trend over the years. The standard of living of Nigerians deteriorate more every passing day, week, month, and year due to the rapidly increasing rate of unemployment in Nigeria.

In Malaysia, the unemployment rate is considered low compared to the early years such as 1986 where the unemployment rate reached as high as 7.6%. Today the unemployment rate is still affected by many factors and in order to make sure it doesn’t reach as high as before, we need to find out the causes of unemployment so that we can provide a solution to the cause of it.