- October 12, 2021
Long term effects of unemployment on socio-economic background
Although the essence of unemployment was in the society from the very initial stage and even during 2000, it perhaps got good growth during the period of the pandemic. Therefore, many people lost their job and were even compelled to shut down their companies. Repeated lockdowns made a business organization locked for a long time.
Lack of business ultimately affected the growth of employment very badly. Basically, there is an intimate relationship between socio-economic development and the growth of employment. Both of them share a proportional relationship. If one increases, then automatically, the graph of the other will also come up.
On the contrary, if employment growth decreases, i.e. unemployment occurs, then the socio-economic development automatically comes down. Therefore, while unemployment hits hard, it gives no such hints. As a result, people remain less prepared for facing such financial turmoil.
There is no exception that unemployment means a condition where people remain jobless due to a heavy crisis of jobs. Thus, people who are the victim of unemployment generally known as unemployed. If you ever think about unemployment, then you may see that there are different types of unemployment. Let us know more about these types to understand the situation deeply.
Verities of unemployment
- Classical Unemployment
It is quite a traditional type of unemployment that used to occur during the 80s. In the year 1980s, suddenly, companies started to offer above the average salary to workers.
Therefore, people who were doing even independent business also started applying for the job. As a result, the number of unemployed people began to increase day by day, but on the contrary, the number of vacancies started to decrease.
- Cyclical Unemployment
Cyclical unemployment is such a concept that can run for long years without investor presence. Generally, during this specific type of unemployment, the industrial organization failed to offer jobs to people due to the lack of demand. In such a condition, there remains a stagnant position within the market, and for this reason, unemployment takes place.
- Structural Unemployment
This specific unemployment occurs in the lower class when there remains no job provision in the labor department. Such a situation occurs due to the lack of skill matching according to the requirement.
Most employers are unable to offer jobs to people due to a lack of skill match. In such a scenario, even if there is a job but due to lack of skills, a company cannot hire people.
- Frictional Unemployment
It denotes a phase through which a person needs to pass when he leaves one job and switches to another job. During changing the job, even after leaving a job, he cannot find out the proper suitable job for him. In such a condition, he does not have any other option left without lending money from private lenders of the UK. Only after that, a person is able to manage his finance with borrowed money and look for another job as early as possible.
- Hidden Unemployment
The term hidden unemployment is appropriate here because it denotes those people who lost all hope of getting a good job. Generally, every year the government of the UK used to publishes a list of unemployed people where there is a mention of headcounts, which clearly represents how many people are still unemployed. Now, among these people, a certain group of unemployed remain uncovered.
People who stopped their search for a job do not come under the headcount of statistical survey of unemployed. Thus, hidden unemployment occurs.
- Long term Unemployment
If you look at the unemployment graph from 1950-2020, you may observe lots of ups and downs within the image. Long-term unemployment will also become visible within the graphical image. When a society dives deep into cyclical unemployment, then it will be considered as long term one.
Outcome of unemployment
There is no doubt that unemployment always hit hard on the societal structure. Increasing unemployment not only gives birth to poverty but also ruins the economic development of society. Besides, people find no ease of mind as they are compelled to borrow money to run all their expenses. Overall, the outcomes are not at all good.
- Effects on the individual person
A person needs to run his family with earned money. Now, this act of earning only remains possible when there is employment. Without a job or sudden loss of employment, a person becomes despair. Moreover, he needs to take over headache how to mitigate all the expenses.
In such a scenario, during any financial emergency, an unemployed person can hardly spend money. On the other hand, due to a lack of jobs, many people are now moving towards business ideas. Therefore, the number of entrepreneurs is rising day by day.
- Effects on society
There is no doubt that unemployment can decrease the development of society. A society where the number of unemployed people is rising day by day must come under the unprivileged society. But as mentioned earlier, if some unemployed people started their own business then, on the other hand, the society will become self-efficient.
Generally, common people can take unemployed loans for start-ups to begin their own business. When there are lots of business organizations and start-ups, then social development can again revive from zero.
- Unemployment over politics
If you try to find out the reason behind political unrest, then certainly it will come forward you one common reason, i.e. unemployment. When there is no job and people live below the poverty line, political unrest is a very common outcome. Because of such a socio-economic breakdown, people became restless and participated in several political movements.
So, these are some major outcomes of prolonged unemployment. Although the first two effects are quite adjustable, if the third one occurs, it creates a major issue and may bring civil war within the country. To save the country from such a nightmare, the government must take place against unemployment.
On the other hand, if the country’s youth remain busy with productive work like beginning a business, they will hardly get some time to waste. By starting a business, one can earn money and run his household. Therefore, unemployment is not completely full of bad effects. Rather some good effects are also offered by it.
How can a country diminish the problem of unemployment?
No exception is the government wants then it can easily diminish the problem of unemployment. This is because many other posts have remained vacant for a long time. Besides, by changing job criteria, a company may also hire people from several backgrounds. However, some of the effective ways to diminish unemployment include,
- Including common people into a welfare program
Several times of the year, the Government of the UK brought into notice different welfare programs. To increase employment, it can now begin to recruit unemployed bachelors. It will help them to survive. Besides, the unemployment problem also will be driven out.
- Miscellaneous solution
When the government is unable to offer any job, then it must curtail down the cost of living and increase the provision of education. The governing body must reduce the amount charged as tax. Regulatory laws should be loosened.
- Beginning the facility of loans
When people have no other job in hand, then they need to borrow money for running the household. Therefore, the government should bring unsecured business loans for those unemployed people to begin afresh. Therefore, these are some effective ways to bring solutions against prolonged unemployment. If you are also suffering from unemployment, then try to appeal for a loan and begin your business.