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
High unemployment is both an economic and social problem. It is an economic problem because represents the waste of resources that are valuable. On the other hand, it is also social because of people of that country struggle with a reduction of their total
For instance, of the causes are considered the extreme unemployment benefits, excessive minimum wage and hiring cost, too high real wages level, the disparity between the unemployed labour and job offers on the market in terms of skills and many others reasons (Bell, 2000). At the same time unemployment impacts the economy and the society. Economy experiences decreased spending power of the families and extra expenditure on unemployment benefits, the society meets changes in the mental health, crimes and violence, standard of living and others. There were many studies conducted on dependencies and mechanisms of unemployment. Unemployment can explained by many factors as well as inflation.
This paper seeks to analyze the reasons of increasing the unemployment rate due to the overpopulation and non-educational as well as unemployment effects on economic and social sphere. Many factors cause the high unemployment rate over the years. our nation suffers from many issues in our community, unemployment is one of the most important problems that suffers the youth from it in our society. from one point of view there are many causes that’s lead to the unemployment. we found that the percentage of population is one of the main reasons of unemployment.
Moreover, it causes inflation and imbalanced economic development in market structures which cause economic delay in growth. This leads to delays in investments and starting of industries. Large scale corruption can hurt the economy and impoverishes the population. Moreover, it reduced tax revenues and government’s ability to finance budget expenditures, which is deficit
His plight affects not only himself but his family and society too. Unemployment constitutes a serious economic, social and political problem for the Indian economy. Regarding its economic aspects, the existence of a large number of unemployed means a tragic waste of human resources and the resultant deprivation of society of the goods and services the unemployed could produce. Socially the unemployed become alienated against the social order. The unemployed have frustration and anger against the system that cannot provide them with work.
1. Introduction Unemployment in the country is not just a situation where an individual is able to work and available for the job market but is unable to find a job, it involves a number of factors being affected such as the economic growth of a country and the continuous raise in prices due to inflation. With the negative impact that unemployment has on the economy of the country it will lead to stagflation which will cause a situation where the inflation rate is high and the economic rate grows at a low pace while the unemployment rate will increase in South Africa. Based on our investigations the assignment will cover the concepts related to unemployment. Firstly the literature review will consist of a discussion of unemployment and the different types of unemployment, as well as its causes with its costs thereof.
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
(http://www.businessdictionary.com/definition/seasonal-unemployment.html) 2.3.2. Frictional Unemployment It is unemployment when workers are losing or leaving their jobs and taking a substantial period of time to find substitute employment. It often involves short spells of unemployment. Some workers who lose their jobs can be able to move quickly into new ones, but others may take longer time to find suitable employment. This may include new and returning entrants into the labour market where a pool of available workers, can help to keep wage inflation down.
Unemployment also known as a universally bad thing. The government tries to find solutions in order to reduce unemployment by making up policies. Inflation is considered one of the most sensitive macroeconomic phenomena in modern economics inducing significant deformations in the productive structure of the economy and sociable injustice in the market.