Unemployment is the condition of those people above a specified age; who are proficient in working, and are actively seeking a job, but are unable to find any suitable job. It is important to note that only those people are to be considered unemployed, a person who is actively seeking work but not getting any job. Those who are retired and out of work for some reason are not considered to be unemployed. The impact Of Unemployment On Life is deep.
Underemployment is the term used to designate those who are overqualified for their jobs. It is measured through the unemployment rate, which is defined as the percentage of the labor force who are unemployed.
Types of Unemployment
Unemployment is also of various types. The following are four types of unemployment:
(1) under demand,
(2) frictional,
(3) structural, and
(4) discretionary unemployment.
1. Under Demand unemployment
Under Demand, unemployment is the result of insufficient demand for workers in the economy or a lack of jobs. It is the major cause of unemployment. It happens when the demand for any product goes down in the market and companies start reducing their production and thus cutting the workforce. As a result, many lose their jobs and get unemployed.
2. Frictional unemployment
Frictional unemployment is used to refer to those employees or workers who were working but got fired from the job or quit for some reason and found a new job. It is not a serious condition at a time since many people try to find a job that suits them and in between they’re unemployed.
3. Structural unemployment
Structural unemployment takes place when the skills of a worker do not match the skills demanded by the jobs available in the company. It also refers to those who are qualified for a particular job but are not able to reach the place because of geographical location. For example, a person living in India is getting a good job abroad but he/she can’t get a visa due to certain visa restrictions.
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This type of unemployment also occurs because of the technological revolution which replaced human labor.
It is the most commonly seen unemployment. Improper education systems are also the cause of this type of unemployment.
4. Discretionary unemployment
Discretionary unemployment happens when a worker is not paid enough by the company and he or decides to leave a job.
Causes of Unemployment
There are different reasons for increasing unemployment that come from both the demand side, or employer, and the supply side, or the worker.
Demand side causes occur due to economic crisis. Businesses are forced to cut costs when the economy slows by reducing production, salary, and workforce. Due to the supply side, frictional unemployment and structural employment take place.
The advancement of technology and its increasing role in the industrial field is also the major cause of unemployment today. Since machines work fast without any salary they are the center of interest for companies. Thus, machines take the place of human labor.
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Improper education systems where there is a lack of teaching skills are the main cause of unemployment in countries like India. Instead of skills they are taught bookish knowledge and rarely have any practical knowledge.
A large population is also one of the reasons behind unemployment. When jobs are not enough for a large number of people, the condition of unemployment arises.
Impact of unemployment
The impact of unemployment can only be felt by both the workers who are employed. Being unemployed hurts a lot, thus sometimes people get depressed. Unemployment deeply affects the nation’s economy. The economy of the country is slowing down, its youth is unemployed.
During the COVID-19 outbreak, many lost their jobs. More than half of the nation is out of work. Many get depressed, suicide, and fall sick.
Due to unemployment workers and their families suffer financially as well as mentally.
Unemployment breaks the families.
Possible Solutions to Unemployment
Unemployment is a serious social and economic issue that results in a tremendous impact on everything but is often ignored.
But it is not a topic to be ignored. It is a very serious issue that needs nationwide attention. To deal with unemployment there following some the suggested ways-
Education
Education is the most important method of curing unemployment. An educated person easily finds a job. Education is the best way for achieving success in life.
Career guidance
It happens sometimes that one has the capability of getting a good job but due to lack of guidance, he or she gets lost and gets confused. Job seekers who could not figure out the right career path should consult a career guidance expert. Every industry provides numerous job opportunities but the workers lack awareness.
Change in the education system
The educational pattern should be completely changed. Students should be allowed to study what they’re interested in. Emphasis should be given to teaching skills and practical knowledge. From the very beginning, students have the right to choose their favorite subject or field.
More attention on making people self-employed
Most people in India are self-employed. They are working in the field of agriculture, trade, pottery, small companies, etc. These persons can give jobs to others and thus help in reducing unemployment. The government is also encouraging people to start their businesses by providing them with financial assistance.
Increase in Production
More production means more labor to work and more labor means more employment.
Reduce population
Population reduction is necessary for less unemployment. It is seen that for one post job there are thousands of applications.