As for the economy, the higher youth unemployment rate, the lower the tax revenues and productivity. When considering the society, political unrest and anti-social behaviour caused from unemployment among youth resulting social instability (Mascherine, Salvatore, Meierkord and Jungblut). On this occasion, both the academic circles and government sector increase awareness of youth jobless problem. Numerous studies and researches on addressing and improving the situation had been established, especially after the Great Recession. On the other hand, many organizations and government devote in tackling youth jobless rate, for example, UK government took steps in raising participation in education and Portugal devoted in reforming the labour market,
High unemployment rate in a country leads to social and economic problems in the community as a whole. Research study undertaken proved that the unemployment. They are devastating phenomena in the lives of graduates and a high incidence of either, are definite indicators of institutional ineffectiveness. More than two million college graduates are now unemployed and millions more are underemployed. According to a recent Wall Street Journal column, young graduates face the bleakest odds among all jobseekers, as their real unemployment rates hover near 17 percent.
Unemployment is defined as “people of working age who are without work, available for work, and actively seeking employment.” (www.ilo.org). There are many factors that will affect the unemployment rate such as, exchange rates, costs of raw materials, and international economic conditions (Blink & Dorton). Unemployment is becoming a major threat in many countries. Spain is an example of how unemployment is a big factor of causing the economy to slow down. The rich are getting richer, and the poor poorer.
Crime is also a negative effect to people that goes through poverty. “Teenagers living in a family where the head of the household was unemployed were also more likely to participate in criminal behavior. Even poor individuals with ‘low risk’ backgrounds were more likely to engage in violence. This means that for certain types of young people, living in a poor household increases their risk of engaging in violence beyond what one would expect” (https://borgenproject.org). If crime goes up thanks to poverty, it would be a much bigger issue to not the community, but the nation.
When unemployment is high, consumer spending tends to be low because unemployed people don't have excess income to spend. Interest
This brings the unemployment level back to its “natural level”, which is determined by characteristics of the labor market. This implies a vertical curve, not a negatively sloping curve. Monetary changes have an effect in the short run, but no permanent effect in the long run. This critique on the original Phillips Curve and the high levels of both inflation and unemployment of the 1970’s put the proposed stable inverse relationship between unemployment and inflation under pressure. The Phillips curve was thereafter changed to the so-called Expectations-augmented Phillips Curve.
This can be harmful for the mental health and lead to problems such as depression or anxiety. You can also develop wasteful habits such as smoking and increased alcohol intake, like ways to cope with difficult situation. Unemployment among young people adversely affect their view of life. And can be reflected on society in increased risk of crime and other forms of antisocial behavior. The ways in which people cope with unemployment varies from person to person.
The more people that are unemployed, the less money being used to buy things which hurts the economy. When people don’t have jobs or are scared about losing their jobs, it affects the way they buy things (consumer confidence, their will to or not to spend their money) which in return, hurts the economy. If the minimum wage is increased then certain businesses won’t be able
On her book, she states that one factor that affects unemployment is that the labour markets is constantly changing, now that many employees move from one job to another as well as those that are leaving and entering the workforce. To her, the problem arrives when these changes takes too much time caused by the absence of perfect information, the costs of training again new employees or the heterogeneity of the new jobs that are opening, what lead to a long time interval of unemployment for
Germany government has adopted several strategies to make their labor market flexible aiming to increase employment rates. However, many experts argue that unemployment can negatively affect social cohesion and even individual well-being. The research question within this article is how employment insecurity affects social alienation. Researchers built three hypotheses. First, “Social well-being is associated with the extent of labor market integration: unemployed than employed, temporary than permanent, and temporary agency employment than fixed-term employment workers are more likely to suffer social exclusion.” Second, “The association of labor market integration and social well-being is partially mediated by the economic situation, social resources and social status.” Lastly, “Individuals who are both affected by employment insecurity and relatively little economic resources shows higher levels of perceived social exclusion than individuals experiencing employment insecurity, but having more economic resources.” Dependent variables are social exclusion and well-being.