2000+ Words Essay on Unemployment | Unemployment: Definition, Types, Causes, Measures, Way Forward
Unemployment is the state of being without a paid job. It is a situation in which someone is looking for work but is unable to find a suitable job. The main cause of Unemployment is the lack of skills and experience that employers are looking for. Unemployment is a term used to describe when people are out of work and actively seeking employment. The unemployment rate is the percentage of people in the workforce who are unemployed.
Definition of Unemployment | What is Unemployment?
There are multiple definitions of unemployment, but at its most basic, unemployment is when people are without work and actively seeking employment. The Bureau of Labor Statistics (BLS) defines unemployed workers as those who are not working but are willing and able to work, and have actively sought employment in the past four weeks. The unemployment rate is the percentage of the labor force that is unemployed.
Four Types of Unemployment
Unemployment is a topic that is often spoken about in the news and is a cause of concern for many people. There are various types of unemployment and each type has different causes.
The first type of unemployment is frictional unemployment. This is when people are unemployed because they are between jobs. They may be looking for a new job because they have just finished school or because they have moved to a new area. Frictional unemployment is not a cause for concern as it is a natural part of the labour market.
The second type of unemployment is structural unemployment. This is when there is a mismatch between the skills of the unemployed worker and the skills required for the jobs that are available. Structural unemployment can be caused by a number of factors, such as changes in technology or changes in the structure of the economy.
The third type of unemployment is cyclical unemployment. This is when unemployment is caused by a downturn in the economy. When the economy is in a recession, there is less demand for goods and services and businesses cut back on production. This leads to layoffs and an increase in unemployment.
The fourth and final type of unemployment is voluntary unemployment. This is when people choose to be unemployed, such as when they are retired or when they are taking care of young children. Voluntary unemployment is not a cause for concern as it is a choice that people make.
There are many causes of unemployment, but the four main types are frictional, structural, cyclical, and voluntary.
Unemployment rate and its impact on the economy
The unemployment rate is the percentage of people in the labor force who are actively looking for work but are not able to find jobs. The unemployment rate has a direct impact on the economy. When the unemployment rate is high, it means that there are more people who are not working and are not contributing to the economy. This can lead to a decrease in economic growth and an increase in the number of people living in poverty.
The unemployment rate also has an indirect impact on the economy. When the unemployment rate is high, it can lead to increased crime rates and social unrest. This can further decrease economic growth and lead to even more poverty.
The unemployment rate can also have a psychological impact on the economy. When the unemployment rate is high, it can lead to a decrease in consumer confidence. This can lead to a decrease in spending, which can further decrease economic growth.
Reasons behind the Problem Of Unemployment
Unemployment is a situation in which people are without work and actively seeking employment. The causes of unemployment are varied, but often it is caused by a lack of skills or experience, or a mismatch between the skills and experience of the worker and the needs of the employer. Sometimes, it can be caused by a structural problem in the economy, such as a lack of jobs in a particular sector. In other cases, it may be due to personal factors, such as a criminal record or a lack of motivation.
There are various reasons behind the problem of unemployment. The most common reason is the lack of skills or experience. When there is a new technology or a new process in the industry, the old workers become unemployed because they don’t have the skills to work in the new environment. Sometimes, even the educated youth are unemployed because the education they have received is not relevant to the needs of the industry.
Another reason for unemployment is the mismatch between the skills and experience of the worker and the needs of the employer. For example, a worker who has experience in the manufacturing sector may not be able to find a job in the service sector. This happens when the employer is looking for specific skills that the worker does not have.
Sometimes, unemployment is caused by a structural problem in the economy. This means that there are not enough jobs in the economy to absorb all the workers. This can be due to a recession or a structural change in the economy. For example, when the manufacturing sector declines, there are not enough jobs in the service sector to replace the lost manufacturing jobs.
In other cases, unemployment may be due to personal factors. For example, a worker may have a criminal record that makes it difficult for him to find a job. Or, a worker may be unmotivated and not willing to look for a job.
The problem of unemployment is a major concern in many countries. Governments are trying to address the problem by creating new jobs, providing training to workers, and assisting the unemployed in finding jobs.
Steps taken by Government of India to reduce the Unemployment
The Government of India has taken many steps to reduce unemployment in the country. Some of these steps taken by the Government of India are as follows:
1. The government has launched various schemes such as the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), Pradhan Mantri Gramin Awaas Yojana (PMAY-G), Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to generate employment opportunities in rural and urban areas.
2. The government has also implemented the 7th Central Pay Commission recommendations, which has resulted in increased government spending and subsequently increased employment opportunities.
3. The government has also devised a scheme for setting up of employment exchanges in every district of the country. These exchanges provide information about various job openings to the job seekers.
4. The government has also provided financial assistance to the unemployed youth through schemes like the Prime Minister’s Employment Generation Programme (PMEGP) and the National Rural Livelihood Mission (NRLM).
5. The government has also created a National Skill Development Mission to provide skill training to the youth and make them employable.
6. The government has also launched the ‘Make in India’ initiative to promote manufacturing in the country and generate more employment opportunities.
7. The government has also taken steps to reduce the number of dropouts from schools and colleges by providing free and compulsory education to all children in the age group of 6-14 years under the Right to Education Act.
8. The government has also launched various schemes like the Swarna Jayanti Gram Swarozgar Yojana (SJGSY), National Rural Livelihoods Mission (NRLM) and Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) to provide self-employment opportunities to the rural youth.
9. The government has also provided reservation in government jobs for the economically weaker sections of the society.
10. The government has also taken steps to improve the functioning of the labour market by enacting labour reforms and amending labour laws.
Sustainable Development Goals (SDGs) on Unemployment
The 2030 Agenda document for Sustainable Development, adopted by all United Nations Member States in 2015 Paris conference, provides a blueprint for peace and prosperity for people and the planet, now and into the future.
At the heart of this Agenda is a commitment to leave no one behind. The 17 Sustainable Development Goals (SDGs) are an interrelated set of goals designed to build a better world for all.
Goal number 8 of the SDGs is to “Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work & opportunities for all”. This goal is important as it is widely recognised that employment is key to poverty reduction and economic development.
Unemployment has many negative consequences, both for individuals and for society as a whole. Individuals who are unemployed may suffer from mental health problems, decreased life satisfaction and increased poverty. unemployment can also lead to social problems such as crime and homelessness.
At the macro level, unemployment can lead to decreased economic growth and decreased tax revenue. This can in turn lead to reduced public expenditure on important services such as healthcare and education.
The global unemployment rate has been on the rise in recent years, reaching 5.7% in 2017. This is largely due to the global financial crisis which began in 2008. However, unemployment rates vary considerably between countries and regions.
There are a number of reasons why unemployment might be high in a particular country or region. For example, structural factors such as a lack of skills or a lack of suitable jobs can lead to high unemployment. Cyclical factors such as a recession can also lead to increased unemployment.
The SDGs provide a framework for countries to address the issue of unemployment. Goal 8 includes a number of targets which, if met, would help to reduce unemployment. These targets include:
• Target 8.4: By 2030, ensure that all men and women have equal access to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate advanced technology and financial services, including microfinance.
• Target 8.5: By 2030, significantly reduce the proportion of youth not in employment, education or training
• Target 8.6: By 2020, develop and operationalize a global strategy for youth employment and implement the Global Jobs Pact of the International Labour Organization
• Target 8.7: By 2030, ensure universal access to sexual and reproductive health-care services, including for family planning, information and education, and the integration of these services within national health systems
• Target 8.8: Protect labour rights and promote safe and secure working environments for all workers, including migrant workers, in particular women migrants, and children
• Target 8.9: By 2030, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture as well as products
In order to meet these targets, countries will need to put in place policies and programmes which address the root causes of unemployment. For example, programmes to improve the skills of the workforce or to create new jobs in growth sectors can help to reduce unemployment.
Sustainable development goal 8 is important as it recognises that employment is key to reducing poverty and achieving sustainable development. By meeting the targets set out in this goal, countries can help to improve the lives of millions of people.
How to reduce the persisting Unemployment at global and national level?
The global unemployment rate remains stubbornly high, despite years of economic growth. This is partly because many jobs that have been created are not the same as the ones that have been lost. For example, the decline of manufacturing jobs in developed countries has been more than offset by the growth of service sector jobs, but the pay and conditions are often very different.
There are a number of things that could be done to reduce unemployment, both at a global and national level.
At a global level, there needs to be more investment in infrastructure and education. This will create jobs and also help to address the skills mismatch that exists in many countries. There also needs to be more focus on creating jobs for young people, who are disproportionately affected by unemployment.
At a national level, countries need to pursue policies that are conducive to job creation. This includes things like investing in areas with high potential for job growth, such as renewable energy, and reforming labour markets to make them more flexible.
Conclusion
The way forward on unemployment is to provide incentives for businesses to invest in job creation, and to support those who are unemployed to find and keep work. Businesses need to feel more confident that they can invest in new staff and grow their businesses. The government can support this by providing tax breaks or subsidies for businesses that create new jobs. The government can also help by making it easier for businesses to take on new staff, for example by simplifying employment law.
Unemployed people need help to find and keep work. The government can provide this help by investing in services like Jobcentre Plus and the Work Programme. These services can provide advice and support to help people find work and keep their jobs. The government can also provide financial support to unemployed people, for example through Jobseeker’s Allowance or unemployment allowance.
There is no single silver bullet for reducing unemployment, but if more is done to address the root causes, then it is possible to bring down the global rate.
