Unemployment is defined as a situation where in a country, citizens who had reach a working age is unable to get employed even though he/she is actively searching for jobs. Unemployment rate is usually used as a measure of the health of the country economy and is measure by the number of unemployed people, divided by the total population of the work force. In general, a country with a lower unemployment rate has a better economy compared to a country with high unemployment rate. When a country faces high unemployment rate, it affects the overall economy, creating a cyclical problem. When people have lesser money to spend because of unemployment, companies suffer from decrease in revenue.
When the aggregate consumption falls the investment incentives for the investors also gets reduced. So as a result the national income or the Gross domestic products gets squeezed. We do possess an overloaded supply of human capital, but the quality of this factor of production is quite low that instead of getting benefits from it we are getting worse off. Moreover when a large percentage of youth remain unemployed it represents a situation of inefficient use of this
According to Schmitt (2013), the minimum wage has slight or even no noticeable effect on the employment rate in that the cost generated by minimum wage is large relative to most of the firms. Therefore, dismissal might be a common resolution for reducing their financial commitment and causing the rise of the unemployment rate. Apart from the employment aspect, SMW also affects workers’ health in certain extent. Business profits are the first priority in many businessman’s minds; however,
Introduction: Unemployment generally defined as the number of persons who are willing to work for the current wage rates in society but not employed currently. Unemployment reduces the long run growth potential of the economy. When the situation arises where there are more other resources for the production and no man power leads to wastage of economic resources and lost output of goods and services and this has a great impact on government expenditure directly (Clark, 2003). High unemployment causes less consumption of goods and services and less tax payments results in higher government borrowing requirements. The impact of the unemployment is seen with the individuals and household curtailing the consumption drastically to meet financial
“Unemployment is like a headache or a high temperature-unpleasant and exhausting but not carrying itself any explanation of its cause”. (William Henry Bevedridge) Unemployment is often used as a measure of the health of the economy .The term “youth” is best defined as a “period of transition from the dependence of childhood to adulthood’s independence and awareness of our interdependence as members of a community” (Social and Human Sciences, UNESCO). Youth unemployment is the number of young people between 16 to 24 years who are looking for a job, but unable to find one. The rate is calculated by dividing number of unemployed youth by the youth labour force, which includes employed and unemployed of the same age. Youth unemployment has become a major challenge in recent years.
In other words, when there is a mismatch between the available jobs and the skills of the workers. Structural unemployment arises when the structure of a nation 's output changes and the demand for the specific type of roles change as well. Moreover, a change in technology is one of the main reasons that cause
REVIEW OF RELATED LITERATURE To Know How the Unemployment of Working Ages of the Philippines from Year 1940-2016 Affects Poverty Presented to Ms. Mhel Marquez De La Salle Lipa Final Quarterly Assessment Reading and Writing (READWRI) First Term, Academic Year 2016-2017 by Bautista, Kristian Erick B. Camay, Neil Christopher G. S11-13 Poverty of Employment Being employed will make things go better but what if that person is unemployed. Unemployment is a phenomenon that occurs when a person is actively searching for employment but unable to find work. Other countries measure this to know if the economy is in a good condition. It is also the weakness of the growing economy. Unemployment leads to poverty and poverty in turn leads to unemployment.
What is unemployment? Unemployment occurs when a person who is actively searching for unemployment is unable to find work. It is often used as a measure of the health of the economy. The most frequently cited measure of unemployment rate. The Unemployed are those of age 15 and above who satisfy the following criteria: without work and has no form of salary is currently available for work and seeking work.
Unemployment is when a person is searching for a job but could not find one,they are actively searching and are willing to do work.Unemployment rate is a measure of the number of people who are both jobless and looking for a job.Economy faces high unemployment in the period of recession.6% of world’s workforce were without job in 2012 according to ILO report. Unemployment have a negative impact on the growth of the economy.It is harmful for the economy’s growth because it increases poverty and waste resources.There are three types of unemployment which are cyclical,frictional and structural unemployment. Structural unemployment is due to lack of skills or wrong area desired for work,when there is advances in technology workers need to acquire new skills inorder to find new job,frictional unemployment is when workers moves from one job to another or to better place inorder to get a better job or quitting old one to get a new job so that short time period is frictional which is always there in the economy whereas cyclical unemployment occurs when there are not enough jobs in the economy for everyone who wants to work in cyclical number of unemployed people are greater then the job vacancies. Unemployment in Pakistan Pakistan was emerged with the population of 32.5millions where people were mostly relying on agriculture and living in rural areas,at first Pakistan had poor industrial infrastructure but till end of 1954it started to emerge and offered employment opportunities