EFFECT OF UNEMPLOMENT

Some of the well-known effects of unemployment on the economy are:

  Unemployment Financial Costs

The Government and nation suffer. In many countries the government has to pay the unemployed some benefits. The greater the number of the unemployed or the longer they are work without work the more money the government has to shell out.

Therefore the nation not only has to deal with the lost income and decreased production but also with additional cost.

  Spending power

The spending power of an unemployed person and his/her family decreases drastically and they would rather save than spend their money, which in turn affects the economy adversely.

Reduce spending power of the employed:

Increased taxes and the insecurity about their own work may affect the spending power of the working people as well and they too may start to spend less than before thus affecting the economy and also the society in a negative manner.

Recession:

With the increase rates of unemployment other economy factors are significantly affected. Such as: the income per person, health cost, quality of health-care, standard of leaving and poverty. All these affect not just the economy but the entire systems and the society in general.

  EFFECT OF UNEMPLOYMENT ON OUR SOCIETY

Unemployment affects not just the person himself but also his/her family and in the long run the society where he lives. Unemployment brings with it despair, unhappiness and anguish. It forces people to live their lives in a way they do not wish to – The life expectancy is negatively affected. Life expectancy is the ease by which people living in a time/place are able to satisfy their needs/wants.

  HERE ARE MAIN ASPECTS:

MENTAL HEALTH:

Mental health problems like: Law self-confidence, feeling unworthy, depression and hopelessness. With the lost income and the frustration involved in it, the recently unemployed may develop negative attitudes towards common things in the life and may feel that all sense of purpose is lost. Frequent emotions could be – low self esteem inadequateness and feeling dejected and hopeless.

HEALTH DISEASES:

The unemployment overall tension can increase dramatically general health issues of individuals.

TENTION AT HOME:

Quarrels and arguments at home front which may lead to tension and increased number of divorces etc.

POLITICAL INSTABILITY:

Unemployment gives birth to political instability in country. Unemployed persons can easily be enticed by antisocial elements. They lose all faith in democratic values and peaceful means. They consider that Government is worthless which fails to provide them work. Loss of trust in administration and the government which may lead to political instability.

TENSION OVER TAXES RISE:

Unemployment also brings up discontent and frustration amongst the taxpaying citizens. In order to meet the demands of the unemployment fund of the government many a times may have to increase the taxes thus giving way to restlessness amongst the taxpaying citizens.

INSECURITY AMONGST EMPLOYEES:

The prevailing unemployment and the plight of the unemployed people and their families may create fear and the insecurity even in the currently employed people.

CRIME AND SUICIDE CASES:

Increase in the rate of crime. Increase in the rate of suicide attempts and actual suicides attempts and actual suicides as well.

SOCIAL OUTING AND STIGMA:

Unemployment may bring a decrease in social outings and interactions with other people, including friends. Unemployment breeds many social problems comprising of dishonesty, gambling, bribery, theft etc. As a result of unemployment social security is jeopardized. Unemployment brings with more than just ‘no work’. It also brings with it the disgrace that the person has to bear. Nobody likes to be termed as unemployed.

STANDARD OF LIVING:

In times of unemployment the competition for jobs and the negotiation power of the individual decreases and thus also the living standard of the people with the salaries packages and income reduced.

EMPLOYMENT GAPS & LOSE OF SKILLS usage: 

To further complicate the situations the longer the individuals is out of job the more difficult it becomes to find one. Employers find employment gasps as a negative aspect. No one wants to hire a person who has been out of work for some time even when there’s no fault of the individual per say.

The unemployed is not able to put his/her skills to use. And in a situation where it goes on for too long the person may have to lose some of his/her skills.

EXPLOITATION OF LABOUR:

In the state of unemployment, laborers are exploited to the maximum possible extent. Those laborers who get work have to work under adverse conditions of low wages. All this tells upon the efficiency of laborers greatly influence the pattern of employment opportunities in the country. Being poor, a person does not make any gainful use of existing resources.

MORE EMPHASIS ON CAPITAL INTENSIVE TECHNIQUES:

In India, a capital is scare and labor is available in surplus quantity. Under these circumstances, the country should adopt labor intensive techniques of production. But it has been observed that not in industrial sector, also in agriculture sector; there is substantial increase of capital than labor. In the western countries, where capital is in abundant supply, use of automatic machines and other sophisticated equipments are justified while in our country abundant labor, results in large number of unemployment.

DEFECTIVE EDUCATION SYSTEM:

The education system in our country too has failed to respond to the existing inter-generation gap. It simply imparts generals and literary education devoid of any practical content. India’s education policy merely produces clerks and lower cadre executives for the government and private concerns. The open door policy at the secondary and university level has increased manifold unemployment among the educated that are fit for white collars jobs.

DECAY OF COTTAGE AND SMALL SCALE INDUSTRIES:

The traditional handicraft has a glorious past and was the main source of employment especially to the village crafts-men, artisans as well as non-agriculture workers. Unfortunately, most of the rural traditional crafts have been ruined or faded partly due to the unfavorable policy of the foreign rulers and partly due to tuff competition from the machine made goods. Consequently, these laborers were out of job. Most of them turned as landless laborers.

LACK OF VOCATIONAL GUIDANCE AND TRAINNG FACILITIES:

As, already discussed, our education system is defective as it provides purely academic and bookish knowledge which is not job oriented. The need of the hour is that there must be sufficient number of technical training institutions and other job oriented courses at village level. Most of the students in rural remains ignorant of possible venues of employment and choices of occupation.

LESS MEANS FOR SELF-EMPLOYMENT: 

Another hurdle in generation of more employment opportunities is that there are inappropriate means for self employment in rural and semi-urban areas of the country. Like other developed countries, most of engineers, technocrats and other well qualified person do not possess ample means for self employment. They go about in search of paid jobs.