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Unemployment: Meaning, Causes, Effects,and Solutions

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Causes and Effects of Unemployment Essay Sample

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The main cause of unemployment in many countries is competition in the labor market, as there are few employment opportunities. This leads to a situation where for every available opportunity, there are more than one qualified individuals. This means that when one gets employment, others will lack employment.

Currently increased technology shifts production from labor intensive to capital intensive. When these machines replace workers, they lack employment hence contributes to unemployment. Unemployment causes social and economic effects, which turn out to be a problem to society. The poverty index among the unemployed is high since these individuals do not have a source of income.

On the social front, it increases illegal means of earning livelihoods. In a place where unemployment is on the rise, such a country has high cases of robberies, gambling, prostitution and bribery. For example, our population in was It has reached a record figure of This added to urban unemployment.

Madan speaks of two main types of causes of unemployment: Age factor fixes limitations on the range of choice of job opportunities. Too young and too old people are not eligible for many of the jobs.

Some young people due to their inexperience, and some old people due to their old age, fail to get some jobs. Young people do not get jobs soon after their studies. They will have to wait. People who are above 50 or 60 years are less adaptable and more prone to accidents. Their capacity to contribute to economic production is also relatively less.

Many of our young people do not have a proper understanding of their own aptitudes, abilities and interests on the one hand, and the tasks or jobs or career they want to pursue, on the other. Employers are always looking forward to find persons who have the ability, experience, interest and physical fitness to work. Sometimes, there may be more men trained in a particular profession than required. The demand is less than the supply, and hence, unemployment.

Due to the inborn or acquired disabilities or deficiencies some remain as partially employed or totally unemployed throughout their life. Illness induced by industrial conditions and the fatal accidents that often take place during the work may render a few other people as unemployed. The population in India is growing at an alarming rate.

Every year India adds to her population to lakh people afresh. More than this, every year about 5 million people become eligible for securing jobs. It occurs mainly in countries or regions with weak labor laws and institutions. Such children are employed as unskilled workers and therefore paid as such. Because of the young age, they are easily manipulated and taken advantage of. A lot of them do not also have responsibilities to take care of and therefore the small amount of money paid seems sufficient to them.

When an economy has more workers than the labor market demands, the level of unemployment will be high. It means that even skilled workers who are willing and able to work will be without jobs because of unavailability of employment vacancies. Lack of job opportunities: Countries where a high number of young people have studied up to the university level but with limited job vacancies have serious unemployment problems.

There is a lot of competition for the few slots available. What happens when the rate of unemployment in a country is high? There are many problems that arise as a result of unemployment, underemployment, and underpayment. Unemployment, underemployment, and underpayment cause economic stress because one is unable to meet financial obligations.

An individual is condemned to a life of poverty with poor living standards. Resources are stretched thin, and even the little financial needs become difficult to meet. Financial success is a key ingredient for peace of mind. When one is always worried about where the next meal will come from or where to get the cash to pay for basic needs such as clothing and education, stress sets in.

Depression can also occur when the self-esteem of a person is damaged. An individual who has gone through school, earned a degree and spent a lot of money in the process can become so frustrated with life when he or she is unable to get employment. Depression can lead one to drugs and alcohol abuse as a coping mechanism.

Decreased demand for consumables: Consumerism is fueled by the purchasing power of the middle class. When people have jobs and are well paid, their purchasing power also improves.

Lack of jobs, underpayment and underemployment cause a decrease in the purchasing power of citizens. Idleness forces them to find something to occupy themselves with. As mentioned before, areas with high rates of unemployment have very high crime rates.

Economic stress also causes societal unrest as citizens become frustrated with their situations and try to find ways to attain better lives. This can be perpetrated through civil unrest to get the elected leaders to act and remedy the situation.

Unable to repay loans and due expenses: Defaulting on loan repayments was one of the reasons why the U. S economy went into recession in The banking sector suffered losses and this affected several sectors of the economy. Defaulting on repayment can also cause people to lose their property through foreclosure and repossession. It can set an individual back financially and trigger a chain of severe effects such as bankruptcy and loss of business.

These are some of the ways in which the issues of unemployment, underemployment, and underpayment can be tackled:. They say education is the key to success. It opens the door to many possibilities and equips one with both life and work skills. The lack of education condemns one to a life of poverty.

There are people who would like to stay in school and attain the highest level of education that they possibly can but are limited by lack of money. Education should, therefore, be made accessible to everyone. One way of achieving this goal is by making basic education free for all. The government should also make it easier for students to access loans to pay for their education. In this way, more people will be able to go to school and learn important skills. Changing the syllabus to meet the challenges of the contemporary job environment is also a good approach.

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Cause and Effect Essay - The Causes of America’s Social Problems - Cause and Effect Essay - The Causes of America’s Social Problems The causes of social problems exist on many levels. When we ask why social problems such as poverty, unemployment, crime, and war exist, each time we determine a cause, we can ask "why" again, as children often do until they are hushed.

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Cause & Effect Essay: Unemployment Unemployment is the one constant throughout history. Despite changing technology, the underlying principles of why unemployment occurs remain the same.

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The causes and effects of unemployment effect everyone in one way or another, every action has a consequence, whether it be good or bad. Writing services Though our team does not provide custom essay writing services to students for ethical reasons, we will be . The process of cause and effect. It’s hard to live a normal healthy life without a job and money. There are many reasons why people are unemployed, but in turn this state of unemployment can cause one to experience financial, emotional, and personal problems.

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The purpose of this paper is to understand the causes and the effects that unemployment has on the family. Unemployment impact greatly on the life of individuals, it affects on all aspects of a person. The impact of unemployment on an individual affects the family as well and the society at large. Causes and Effects of Unemployment Essay Sample Unemployment or joblessness is a state of life in which a person is missing a paid employment opportunity and is actively seeking work. Nowadays hundreds of millions of people are off the pay roll, roughly corresponding to about seven percent of the world’s population, whereas these rates can be much higher in regions of Southern and Western .