Essay on Unemployment | Types of unemployment | Causes, and effects of unemployment--- 670 words

Unemployment

Definition of unemployment:

“Unemployment means joblessness of those people who are able and ready to work”. It is a serious problem. It is not only one country’s problem it is a worldwide problem.

Types of unemployment:

The following are the few types of unemployment.

1: Structural unemployment

2: frictional unemployment

3: Cyclical unemployment

4: seasonal unemployment

5: Classical unemployment

---Structural unemployment:

“Structural unemployment refers to a mismatch between the jobs available and the skill levels of the unemployed.”

It means if the workers available are not skilled for the work required.

FOR EXAMPLE: if an old institution is declined and new institutions are been established. The new one required some advanced skills that may not available in the old workers. This causes structural unemployment.

---Frictional unemployment:

Frictional unemployment is defined as the time spent between jobs when a worker is searching for a job or transferring from one job to another.

FOR EXAMPLE: if a person leaves a job to find another job. But the time period in which he cannot found a new job he is temporarily jobless.

---cyclical unemployment:

Cyclical unemployment is the component of overall unemployment that results directly from cycles of economic upturn and downturn. It means unemployment due to the economy.

FOR EXAMPLE: when automobiles workers are laid off due to cut labor costs. During this time period people buy fewer vehicles, so the company doesn’t need many workers to reach the demand.

---seasonal unemployment:

Seasonal unemployment is defined as a specific time period when people are unemployed at a particular time of year.

FOR EXAMPLE: any kind of agricultural jobs. Many crops only grow in a specific times of the year. During the rest of the time, the person is unemployed.

---classical unemployment:

Classical unemployment is defined as when real wages are kept above the market-clearing wage rate, leading to a surplus of labor supplied. It results in a general lack of demand for labor.

FOR EXAMPLE: if a company offers some specific amount of money as a payment for the worker but the worker is demanding more than the amount fixed, the job will go unfilled.

Causes of unemployment:

Change of technology is one of the serious causes of unemployment. Due to the change of technology the owner will search for the employees with advanced skills. Due to the reason the unemployment of the old worker occurs. Recession is a prime factor of unemployment in many countries. Because of financial crises in one country, the other countries will also be effected to globalization. The increase in population is also a cause of unemployment. Due to the increase in population the number of people searching for jobs increases and the number of jobs decreases. Lack of education and lack of skills is also a cause of unemployment. An uneducated and unskilled person is less likely to get a job than an educated and skillful person. An owner will only search for an educated and skillful person in this way unemployment increases. Raising the costs of the goods also causes unemployment. When the prices of goods increase the companies will not be able to pay the salary to so many workers, in this way the companies will not heir a large number of employees.

Effects of unemployment:

Unemployment brings financial obstacles to the family. People cannot meet their family expenses and brings frustration among family members. Unemployment also causes an increase in the rate of crime due to unemployment people to lose trust in government and lead to crimes like bribery, theft, and corruption, etc. unemployment also takes the person from depression to death. An unemployed person is always depressed and he may start taking medicines to keep him engaged with other tasks, which is very harmful. Being unemployed can lead to depression, low self-esteem, anxiety, and other mental health issues, especially if an individual truly wants a job but can't find employment. Tension can occur, causing stress and strain on the body.

“It’s a recession when your neighbor loses his job; it depression when you loses yours”

(Harry S. Truman)

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