the unemployment essay

Unemployment Essay

500+ words essay on unemployment.

Unemployment is a serious problem among young people. There are thousands of people who do not have any work to do and cannot find work for themselves. Unemployment refers to the situation where a person wants to work but cannot find employment in the labour market. One of the major reasons that contribute to unemployment is the large population of India and the limited availability of resources. In this essay on unemployment, we will discuss all these issues responsible for unemployment in India and how we can overcome this problem. Students must go through this unemployment essay to get ideas on how to write an effective essay on the topic related to unemployment. Also, they can practice more CBSE essays on different topics to boost their writing skills.

Unemployment is measured by the unemployment rate, defined as the number of people actively looking for a job as a percentage of the labour force. The unemployment rate for the year 2013-14 in rural India was 4.7%, whereas it was 5.5% for urban India. In the short term, unemployment significantly reduces a person’s income and, in the long term, it reduces their ability to save for retirement and other goals. Unemployment is a loss of valuable productive resources to the economy. The impact of job loss in rural and regional areas flows through the local community, damaging businesses.

Reason for Unemployment

An unemployed person is one who is an active member of the labour force and is seeking work but is unable to find any work for himself. There are multiple reasons behind the unemployment of a person. One of them is the slow economic growth, due to which jobs in adequate numbers are not created. Excessive dependence on agriculture and slow growth of non-farm activities also limit employment generation. Unemployment in urban areas is mainly the result of substantial rural migration to urban areas. This has also resulted in a labour workforce in cities. The lack of technology and proper machinery has also contributed to unemployment.

The present educational system is based on theoretical knowledge instead of practical work. Thus, it lacks the development of aptitude and technical qualifications required for various types of work among job seekers. This has created a mismatch between the need and availability of relevant skills and training. This results in unemployment, especially among the youth and educated people with high degrees and qualifications. Apart from it, the lack of investment and infrastructure has led to inadequate employment opportunities in different sectors.

Steps to Eliminate Unemployment

Various strategies and proposals have been implemented to generate employment. Many Employment programmes and policies have been introduced and undertaken to boost self-employment and help unemployed people engage in public works. The Government of India has taken several policy measures to fight the problem of unemployment. Some of the measures are the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), National Skill Development Mission, Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Regional Rural Banks (RRBs).

Despite the measures taken by the government, India remains a country experiencing severe unemployment problems. It can be resolved by imparting education in such a way that youth get the necessary skills so as to get employment easily. Setting up various vocational training and vocational courses for undergraduate and postgraduate students will help in finding employment for youth. The government needs to emphasise these courses at the primary level and make them a compulsory part of the curriculum to make students proficient in their early stages of life. Career counselling should be provided within schools and colleges so that students can choose a better career option based on their interests and ability. Government should create more job opportunities for the youth and graduates.

India is a fast-growing economy. There is an enormous scope for improvement in the unemployment sector. The various measures and steps taken by the government to increase the employment rate have succeeded to a great extent. The widespread skill development programmes have gained popularity across the nation. With better enforcement of the strategies, the employment level can be significantly improved. Although, we have to go a long way before we can say that all the people in India will get employment.

We hope this essay on unemployment must have helped students in boosting their essay-writing skills. Keep learning and visiting the BYJU’S website for more study material.

Frequently Asked Questions on Unemployment Essay

Is unemployment still an existing problem in india.

Yes, unemployment is still a serious issue in our country. Steps need to be taken by the government and also by the youngsters in India to improve this situation.

Is it necessary for schoolchildren to be informed about unemployment?

Students at this young age should definitely be informed about this topic as it will motivate them to study and aim for higher scores in exams.

What points are to be added to an essay topic on Unemployment?

Add details about different age groups of people suffering from this state of employment. You can focus on the fact that poverty is an indirect reason for unemployment and vice-versa. Then, suggest steps that can be taken to bring about an improvement in education and increase the percentage of literacy.

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Essay on Unemployment: 100 to 300 Words

Updated on
Mar 30, 2024

Writing an essay on unemployment provides an opportunity to explore a critical issue affecting societies worldwide. Unemployment, a multifaceted problem, has far-reaching consequences that touch upon various aspects of individuals, families, and nations. In this essay, we will delve into the complexities of unemployment, examine its causes and consequences, discuss government initiatives, and shed light on potential solutions.

Table of Contents

1 What is Unemployment?
2 Essay on Unemployment in 100 words
3 Essay on Unemployment in 200 words
4 Essay on Unemployment in 300 words
5 Tips to Ace in Writing An Essay

Must Read: The Beginner’s Guide to Writing an Essay

What is Unemployment?

Lack of jobs leads to unemployment. It is a very serious economic and social concern that is happening all around the globe leading to many social ills. This issue is a major one and hence many governments are trying to address it. When people of a nation are employed, that leads to the economic and social well-being of that nation. To address it, the education system needs to be modeled differently so as to increase the employability of people. In democracies, political parties use unemployment as a core issue in their election manifestos.

Essay on Unemployment in 100 words

Unemployment refers to the condition when individuals, capable and willing to work, are unable to secure gainful employment. It is a pervasive issue across the globe, with varying degrees of impact on societies. Unemployment results in financial instability, and emotional distress, and hampers individual growth. Governments and organizations must collaborate to create opportunities for employment through skill development and policy implementation.

Essay on Unemployment in 200 words

Unemployment, a pressing concern globally, stems from multiple factors that hinder the workforce’s engagement in productive activities. It affects both developed and developing nations, contributing to economic imbalances and social disparities. The consequences of unemployment include reduced income levels, increased poverty rates, and strained government resources. Moreover, the psychological toll it takes on individuals and families can be severe, leading to stress, depression, and strained relationships.

Essay on Unemployment in 300 words

The intricate web of unemployment is spun from a mix of causes, ranging from economic fluctuations to structural shifts in industries. Cyclical unemployment, driven by economic downturns, and structural unemployment, resulting from a mismatch between skills and job openings, are widespread forms. Additionally, technological advancements lead to technological unemployment as machines replace human labour.

Unemployment has cascading effects on societies. Diminished purchasing power affects market demand, thereby impacting economic growth. As unemployment rates rise, so does the burden on social welfare programs and the healthcare system. The phenomenon also fuels social unrest and political instability, making it a challenge governments cannot ignore.

Governments worldwide have initiated strategies to tackle unemployment. Skill development programs, vocational training, and entrepreneurship initiatives are designed to equip individuals with market-relevant skills. Furthermore, promoting labour-intensive industries and investing in sectors with growth potential can generate employment opportunities.

In conclusion, unemployment is a complex issue that necessitates a multi-pronged approach. Governments, industries, and individuals must collaborate to alleviate its impact. Effective policy implementation, education reforms, and the cultivation of entrepreneurial spirit can pave the way towards reducing unemployment rates and fostering a more stable and prosperous society.

Tips to Ace in Writing An Essay

Before we dive into the specifics of unemployment, let’s briefly discuss some tips to enhance your essay-writing skills:

Understand the Prompt: Ensure a clear understanding of the essay prompt to address all its components effectively.
Research Thoroughly: Gather relevant information from credible sources to build a comprehensive and informed essay.
Organize Your Thoughts: Create an outline to structure your essay logically, allowing your ideas to flow coherently.
Introduction and Conclusion: Craft a compelling introduction to engage your readers, and a succinct conclusion to summarize your key points.
Use Clear Language: Express your ideas using clear and concise language, avoiding jargon or overly complex vocabulary.
Provide Examples: Illustrate your points with real-life examples to enhance understanding and credibility.
Edit and Proofread: Revise your essay for grammar, punctuation, and coherence to ensure a polished final draft.

Also Read: Unemployment v/s Underemployment – What’s Worse?

Manasvi Kotwal

Manasvi's flair in writing abilities is derived from her past experience of working with bootstrap start-ups, Advertisement and PR agencies as well as freelancing. She's currently working as a Content Marketing Associate at Leverage Edu to be a part of its thriving ecosystem.

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Essays About Unemployment: Top 6 Examples and 5 Prompts

Read our guide to see helpful essay examples and prompts to further your understanding and write essays about unemployment.

Unemployment is an unfortunate circumstance many find themselves in; it is a challenge that civilized society faces today. When people are unemployed, they look for jobs but cannot get them. As a result, they are left without a source of income and cannot adequately provide for themselves and their families. This, in turn, can lead to various issues, including depression.

Unemployment is a social, economic, and political issue. It leaves many people in poverty and prevents people from obtaining a source of income. As a result, politicians capture the eyes of voters by promising to lower the unemployment rate to get elected.

You can get started by reading these essay examples if you are writing essays about unemployment.

6 Examples of Essays About Unemployment

1. unemployment reflection by christopher haynes, 2. what i learned from nearly a year of unemployment by becca slaughter, 3. why aren’t europe and canada in the same boat as u.s. for unemployment by glen hendrix, 4. a global dilemma: how unemployment creates poverty by tess hinteregger, 5. why has covid-19 been especially harmful for working women by nicole bateman and martha ross, 6. youth day and ordeal of nigerian youth by utomi jerome-mario, essay prompts about unemployment, 1. unemployment during the covid-19 pandemic, 2. the connection between unemployment and crime, 3. unemployment: whose fault is it, 4. the causes of unemployment, 5. the effects of unemployment.

“In order to secure work, we must be prepared to change or upgrade our skills and be willing to relocate if necessary. But some people are not interested in retraining to find work in another field, some people do not have the confidence to go out and look for work, and some refuse to accept a job they feel is below their level. Unless people like this change their attitudes, they will not be able to find work.”

Haynes provides two perspectives on unemployment; first, that the government should do more to address it, and second, that if people want work, they must adjust to make a living. He believes that many are unemployed because they are unwilling to change their skillset or relocate to get a job. Therefore, more should be done to reduce unemployment, but it goes both ways; everyone must put in the effort.

“I remember feeling embarrassed and powerless. I was angry it wasn’t my decision. I was happy I didn’t have to go back there, yet I was stressed about not having anywhere to go. Ultimately, I felt an overwhelming sadness that left me terrified. While I was overflowing with confusing and contradicting emotions, I somehow felt empty.”

In her essay, Slaughter reflects on her unemployed time and how it changed her. Her previous job was long and stressful, but whenever someone would ask her what she did for a living, she was embarrassed and regretful for not being there anymore. In addition to losing her job, she feels like she lost a part of herself at that time. Thankfully, she got a new job, one less taxing than her previous one.

“You would think paying all that money year after year to a government whose purpose is to “establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity” would entitle that person to a modicum of “blessings” to insure his “tranquility” and “general welfare” in case of some stupid virus pandemic. It would certainly be the “just” thing to do. And that person’s “posterity” might look a bit less bleak. European governments and Canada did just that. And it’s not even explicitly stated in the preamble to their constitution.”

Hendrix criticizes the United States’ response to the unemployment problem caused by the COVID-19 pandemic, saying that Canada and European nations have done a much better job. He discusses how much better their unemployment benefit system is compared to the U.S. and how it is ironic that the United States, whose constitution says all of these things promoting justice and wellbeing, cannot provide that for its citizens during a global pandemic.

“While unemployment can create poverty, poverty also reduces the chance of being employed. To ensure that those who are affected by unemployment do not fall into the negative cycle, researchers believe that governments should focus on improving quality education and training all young people so they remain in school.”

Hinteregger, in her essay, explains the link between unemployment and poverty, writing that it leads to the loss of income. People will also have to raise their families in poverty, which perpetuates the cycle of poverty. In addition, the poor may resort to violence to make a living. She points out the sheer irony of this issue, as unemployment causes poverty while poverty may also reduce the chance of being employed.

“COVID-19 is hard on women because the U.S. economy is hard on women, and this virus excels at taking existing tensions and ratcheting them up. Millions of women were already supporting themselves and their families on meager wages before coronavirus-mitigation lockdowns sent unemployment rates skyrocketing and millions of jobs disappeared. And working mothers were already shouldering the majority of family caregiving responsibilities in the face of a childcare system that is wholly inadequate for a society in which most parents work outside the home.”

Bateman and Ross write about the effects of the COVID-19 pandemic on women. Many women are forced to go through so much to provide for their families; however, the lockdowns led to many of them losing their jobs. The unemployment rate for women rose dramatically, by 12 percent, from February to April of 2020. It has been difficult for them to balance work with taking care of their families, women’s primary role as dictated by society.

“Youth unemployment is potentially dangerous as it sends a signal to all segments of the Nigerian Society. Here in Nigeria, the rate of youth unemployment is high, even at the period of economic normalcy i.e. the oil boom of the 1970s (6.2 per cent); 1980s (9.8 per cent) and the 1990s (11.5 per cent). Youth unemployment therefore is not a recent phenomenon. But if what happened in the 1980s/90s were a challenge of sorts, what is happening presently, going by the latest report by the National Bureau of Statistics (NBS), is a challenge.”

Jerome-Mario’s essay focuses on several issues affecting the Nigerian youth, including unemployment. The country has a high unemployment rate; over a fourth of the youth population is unemployed. He stresses the importance of the youth using their voice to make a change and to persuade the government to care for its citizens more.

How COVID-19 contributed to the nursing shortage?

The pandemic and its lockdown policies have undoubtedly caused many people to lose jobs. Look into the impact of COVID-19 on the unemployment rate, particularly during the early months of the pandemic. Which sectors were most affected? Pull data and statistics to show how the public was affected by the covid-19 pandemic in terms of unemployment.

Many say that unemployment leads to higher crime rates. Do you believe this is true? Research how unemployment is linked to crime; examine the effects of unemployment on mental health; and conclude whether this may contribute to the increased likelihood of committing a crime.

In Haynes’ essay, he claims that employers/the government, and workers are to blame for unemployment. After reading his essay and both arguments, who do you believe is at fault? Explain your response in detail, and make sure to provide a solid base of evidence.

Unemployment has many contributing causes. Assuming a non-pandemic setting, research what causes unemployment and list them down in your essay. Elaborate on each one and, if you can draw connections, explain them as well.

As a grave issue, unemployment has many severe effects, notably poverty. For your essay, write about the effects of unemployment on a person, both physical and mental. How are they connected? What secondary effects might they produce? For a compelling and argumentative essay, answer these questions using research material and interview data.

For help with this topic, read our guide explaining what is persuasive writing ?If you are interested in learning more, check out our essay writing tips !

Martin is an avid writer specializing in editing and proofreading. He also enjoys literary analysis and writing about food and travel.

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Unemployment Essay

Essay on Unemployment

The three basic needs of human beings are - food, home and clothing. All these needs can be properly fulfilled only if a person has money. And to earn this money, the person must be employed, that is, he or she must have a paid occupation. However, there are many people in the world and our country too who have failed to secure a job. As a result, they have an insignificant source of income. This state of joblessness is called unemployment.

Why Unemployment is a Serious Issue?

To live a dignified life, people need to earn money and fulfil their basic needs. Unemployment snatches this right from them and their standard of life gets degraded.

The lack of money due to unemployment leads to the lack of nutritious food. The health of the unemployed is bound to deteriorate. The children of unemployed people cannot get the proper diet. Hence, they suffer from various illnesses. Their quality of life reduces drastically over time.

An unemployed parent cannot give proper education to his child. As a result, the child too will not be able to get a good job once he grows up. Thus, unemployment breeds unemployment.

Unemployment and Social Instability

An unemployed person is open to doing socially unacceptable work to get money. Thus, very often in a society where there are a huge number of unemployed people, there will be a great proliferation of thieves, snatchers, bank-robbers and much more serious anti-social elements.

Covid-19 & Unemployment in India and the World

In March 2020, India entered into lockdown to stop the spread of Coronavirus. While the lockdown was effective, hundreds of people got jobless because of the prolonged shutdown of the offices. The unemployment rate has climbed up to 27.1% in April. Sure, once the offices are opened, this rate will come down. However, this grim scenario will haunt us for at least one year.

The situation in other countries is the same. 30 million people in the US have filed unemployment claims. The unemployment rate, there, is 14.7%. In the UK the number of unemployment claims has shot up by 70%.

How Can We Come Out of The Muck?

1. Self-Dependence

As the Prime Minister of India proclaimed, the Indians need to be self-dependent. We need more vocational training. Gone are the days when being employed meant being an engineer or a doctor. A farmer is an employed person. He produces his food and that of the others. There is no shame in being a farmer. We have to stop depending on foreign countries for IT work - Let us open more startups. Why do we depend on China for Diwali firecrackers or Holi colors - We can make them ourselves. Self-help is the best help.

2. Shifting The Manufacturing To India

To create more jobs, India needs to make more manufacturing hubs in the country. Let us not just assemble the Smartphone parts, let us scour the mineral-rich country and take out silicon to make circuit boards.

3. Educating The Women

There is a real connection between the lack of education and unemployment. To educate the children of the country, we first need to educate the women of the country. Only then can the children be educated properly.

4. Stopping Politics Based On Religion And Region

Stopping petty politics is the need of the hour. The politicians need to work in a concerted way to make Indians employed.

As Charlie Chaplin said, there is no glory in poverty. Let us not pride ourselves on being compromising. Let us remain hungry for a better life. Let’s get employed.

FAQs on Unemployment Essay

1. What are the types of unemployment prevalent in the world?

Unemployment is a serious issue across the globe and is of four major different types, that is, demand deficient unemployment, frictional unemployment, structural unemployment, and voluntary unemployment.

Demand deficient unemployment: it is the biggest form of unemployment occurring generally during a recession. A recession is a period when the demand for a certain product in the market decreases, and in reaction to that company reduces its production and cuts down on the workforce.

Frictional unemployment: it is a stage of unemployment where the worker by his own will is searching for a job that is more suitable for his/ her skills and also pays him equal to or more than what he was getting in his previous workplace.

Structural unemployment: In this particular unemployment, geographical location acts as a barrier or the skill set of a worker is not following the skills desired by the jobs available in the market.

Voluntary unemployment: this type of unemployment is by the will of the worker because the worker leaves his/ her job on his own because the pay he is getting is less than his cost of living.

2. What are the causes of unemployment?

Unemployment is a global concern across the globe. Unemployment can be due to any possible reason. Unemployment doesn’t need to be from the employer side only, it can even be from the demand side, that is the demand of the product is low, therefore production is reduced due to which the workforce is also cut down. Unemployment is also from the worker side, that is, the current job doesn't pay him well according to his skill set or the current job is not much of his desired skills. In both these cases, the worker himself leaves his job.

3. What is meant by long-term unemployment and short-term unemployment?

Long-term unemployment refers to the phase of unemployment that lasts for more than 27 weeks, that is 189 days. Short-term unemployment refers to a state where the individual is not unemployed for more than a month and gets a new job very quickly. Long-term unemployment is very dangerous as compared to short-term unemployment and has adverse effects on the economic condition of an individual because of obvious reasons. The main effects of long-term unemployment on an employee are:

There is a significant decrease in the net worth reported in almost 56% of the long-term unemployment cases.

Unemployment not only affects the financial status but family relations as well, 46% of the cases of unemployment experienced strained family relationships.

Unemployment also poses an adverse effect on the career growth of individuals. Almost 43% of the long-term unemployed have observed a drastic effect on their ability to achieve their desired career goals.

Apart from financial and effect on career, long-term unemployment also affects the self-respect of individuals that was reported among approximately 38% of cases of long-term unemployment. Out of these 38% cases, 24% cases required professional help to come back to normal.

4. What are the major reasons that cause unemployment?

Unemployment can persist in a country due to many different reasons.

One of the main reasons for unemployment is population growth because an exponential increase in population has given rise to higher rates of unemployment. After all, the number of people looking for a job is increasing but the jobs available in the market are constant or are not increasing significantly as compared to the rate of population growth.

Due to the rapid growth of technology on a global scale, most of the work that was done through human interference is now carried out through machines and technologies. The advancement in technology has completely replaced the unskilled and low-skilled labourers in factories and companies. All factories now prefer technology over labour simply because technologies are more accurate and fast.

Lack of education and desired skills is another major cause of unemployment. Currently, with technologies driving the world, the demand for skilled and educated workers has increased and the employment opportunities for people without adequate education have decreased, raising the unemployment rate of the country.

Also, the rising pay scale sometimes makes it difficult for companies to hire employees and pay them the optimum salary.

5. What are the initiatives taken by the government to deal with increasing rates of unemployment?

The government has taken the issue of unemployment very seriously. There are various programs, schemes, and initiatives taken by the government to deal with this situation efficiently. Some of the schemes started by the government to reduce unemployment are Integrated Rural Development Program (IRDP), Drought Prone Area Program (DPAP), Employment Assurance Scheme, Jawahar Rozgar Yojna, Nehru Rozgar Yojna (NRY), Prime Minister’s Integrated Urban Poverty Eradication Program (PMIUPEP), Jawahar Gram Samridhi Yojna, employment guarantee scheme, employment exchange, promoting small and cottage industries and development of the organized sector. There are many more schemes launched by the government apart from the ones mentioned here. Also, apart from schemes, the government has launched training for self-employment and skill India program, to help individuals learn skills which can help them in finding a satisfactory job for themselves and their families.

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Reasons for Unemployment

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Published: Mar 14, 2024

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Unemployment Essay for Students and Children

500+ words essay on unemployment.

Unemployment is a very serious issue not only in India but in the whole world. There are hundreds and thousands of people out there who do not have employment . Besides, the problems of unemployment are very severe in India because of the growing population and demand for jobs. Moreover, if we neglect this problem then it will be going to become the reason for the doom of the nation.

What is Unemployment?

Unemployment refers to a situation in which a skilled and talented people wanted to do a job. But cannot find a proper job due to several reasons.

Types of Unemployment

Now we know what is unemployment but unemployment does not only mean that the person does not have a job. Likewise, unemployment also includes people working in areas out of their expertise.

The various types of unemployment include disguised unemployment, seasonal unemployment, open unemployment, technological unemployment, structural unemployment. Besides, some other unemployment is cyclic unemployment, educated unemployment, underemployment, frictional unemployment, chronic unemployment, and casual unemployment.

Above all, seasonal unemployment, under unemployment, and disguised unemployment are the most common unemployment that is found in India.

Reasons for Unemployment

In a country like India, there is much reason for a large section of the population for being unemployed. Some of these factors are population growth, slow economic growth , seasonal occupation, slow growth of the economic sector, and fall in the cottage industry.

Moreover, these are the major reason for unemployment in India. Also, the situation has become so drastic that highly educated people are ready to do the job of a sweeper. Besides, the government is not doing his work seriously.

Apart from all these, a large portion of the population is engaged in the agricultural sector and the sector only provides employment in harvest or plantation time.

In addition, the biggest reason of unemployment in India is its vast population which demands a large number of jobs every year which the government and authorities are unable to provide.

Consequences of Unemployment

If things will go on like the current scenario then unemployment will become a major issue. Apart from this, the following things happen in an economy which is an increase in poverty, an increase in crime rate, exploitation of labor, political instability, mental health, and loss of skills. As a result, all this will eventually lead to the demise of the nation.

Get the huge list of more than 500 Essay Topics and Ideas

Initiative by Government

The government has taken the problem very seriously and have taken measures to slowly reduce unemployment. Some of these schemes includes IRDP (Integrated Rural Development Programme), DPAP (Drought Prone Area Programme), Jawahar Rozgar Yojana, Employment Assurance Scheme, NRY (Nehru Rozgar Yojana), Training for self-Employment, PMIUPEP (Prime Minister’s Integrated Urban Poverty Eradication Program), employment exchange, Employment Guarantee Scheme, development of organized sector, small and cottage industries, employment in forging countries, and Jawahar Gram Samridhi Yojana and few more.

Besides, these schemes the government also make some rules flexible, so that employment can be created in the private sector also.

To conclude, we can say that the problem of unemployment in India has reached a critical stage. But, now the government and local authorities have taken the problem seriously and working on it to reduce unemployment. Also, to completely solve the issue of unemployment we have to tackle the main issue of unemployment that is the vast population of India.

FAQs about Unemployment

Q.1 Why there is a problem of unemployment in India? A.1 Due to overpopulation and lack of proper skills there is a problem of unemployment in India.

Q.2 Define Disguised unemployment? A.2 Disguised unemployment refers to a form of employment in which more than the required numbers of people work in industry or factory. And removing some employee will not affect productivity.

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Unemployment: Causes and Effects Essay

Unemployment is a significant social and economic problem. Not always positive aspects of enterprise development contribute to a decrease in the percentage of unemployed. The negative impact may be cumulative along with phenomena such as inflation external factors, including the pandemic. Difficulties in obtaining an education for low-income families only widen the gap between the rich and the poor, which in America is already the largest in the world (Telford, 2019). Consequently, the leading causes of unemployment are inflation, advanced technology, and lack of education or skills for employment.

Inflation drives up prices in the economy. Naturally, the price of both products and the materials they have produced increases. Employers seek to recoup the costs of inflation by constantly increasing the financial performance of sales. One of these methods is to increase the gross profit ratio by reducing the cost of production. As a result, the company seeks to optimize costs by reducing wages and saving on various employee benefits. This unfair practice leads to layoffs.

One of the vectors of technology development, which is now the most crucial unemployment, is automation. The replacement of human labor brings the company to eliminate the human error factor, the ability to operate robots around the clock, reducing jobs. From an economic point of view, many of yesterday’s professionals consider their position obsolete and remain without skilled work. A possible way out of this situation is to retrain as a consultant to maintain such machines.

The lack of skills can be caused by several reasons, from income inequality that limits access to education to the narrow specialization of a company that requires training. On-the-job training requires, in turn, the cost of human and time resources, which can affect the company’s operations. As a result, many companies do not train employees but want to get a qualified specialist with a high salary immediately. Applicants lacking these skills are forced to remain unqualified, contributing to rising unemployment and shortages.

Telford, T. (2019). Income inequality in America is the highest it’s been since Census Bureau started tracking it, data shows. Washington Post , 26. Web.

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Essay on Unemployment

Here we have shared the Essay on Unemployment in detail so you can use it in your exam or assignment of 150, 300, 500, or 1000 words.

You can use this Essay on Unemployment in any assignment or project whether you are in school (class 10th or 12th), college, or preparing for answer writing in competitive exams.

Topics covered in this article.

Essay on Unemployment in 150-250 words

Essay on unemployment in 300-500 words, essay on unemployment in 500-1000 words.

Unemployment is a pressing issue that affects individuals and societies globally. It refers to the state of being without a job or a source of income despite actively seeking employment. Unemployment poses significant challenges, both economic and social, for individuals and communities.

The consequences of unemployment are far-reaching. Financial instability decreased living standards, and a loss of self-esteem and confidence are common outcomes. Individuals may face difficulties in meeting their basic needs, providing for their families, and planning for the future. Moreover, unemployment can lead to social unrest, increased crime rates, and a strain on public resources.

Addressing unemployment requires a multifaceted approach. It involves creating favorable economic conditions, promoting job growth through investment and entrepreneurship, and providing individuals with the necessary skills and training for employment opportunities. Furthermore, social safety nets, such as unemployment benefits and job placement services, play a crucial role in supporting those who are unemployed.

Efforts to reduce unemployment should also focus on addressing structural issues in the labor market, promoting fair employment practices, and encouraging inclusive growth. Additionally, fostering a supportive environment for innovation, research, and development can stimulate job creation and economic prosperity.

In conclusion, unemployment is a complex issue with wide-ranging implications for individuals and societies. It demands comprehensive strategies that encompass economic policies, skill development, and social support systems. By addressing unemployment effectively, we can strive towards a society where individuals have access to fulfilling work opportunities and can contribute to the overall well-being and prosperity of their communities.

Title: Unemployment – The Economic and Social Challenge

Introduction :

Unemployment is a pressing issue that affects individuals, families, and societies worldwide. It refers to the state of being without a job or a viable source of income despite actively seeking employment. High levels of unemployment have significant economic and social consequences, making it a critical challenge to address.

Causes of Unemployment

Unemployment can stem from various factors. Economic downturns and recessions often result in job losses as businesses struggle to sustain their operations. Technological advancements and automation have also led to job displacement, particularly in industries that rely heavily on manual labor. Globalization and outsourcing practices have contributed to the relocation of jobs to countries with lower labor costs, creating unemployment in certain regions.

Impact of Unemployment

Unemployment has far-reaching implications. Financial instability resulting from joblessness can lead to increased poverty rates, limited access to healthcare, and housing insecurity. It also strains social cohesion, as unemployed individuals may experience psychological distress, low self-esteem, and a loss of purpose. Moreover, long-term unemployment can lead to skills deterioration and a loss of work experience, making it increasingly difficult for individuals to re-enter the labor market.

Addressing Unemployment

Addressing unemployment requires a multi-faceted approach:

Economic Policies: Governments should implement policies that promote economic growth, investment, and job creation. This includes fostering a business-friendly environment, reducing bureaucratic barriers, and providing incentives for entrepreneurship and innovation. Additionally, targeted industry development strategies can identify sectors with growth potential and encourage job creation in those areas.

Education and Skills Development: Investing in education and skills development is crucial to equip individuals with the necessary competencies for available job opportunities. Collaboration between educational institutions, employers, and government agencies can help bridge the skills gap and ensure that individuals are prepared for the changing demands of the labor market. Upskilling and reskilling programs can help unemployed individuals acquire new skills and improve their employability.

Job Creation Initiatives: Governments should prioritize job creation initiatives, particularly in sectors with high growth potential. This can be achieved through infrastructure projects, green technology investments, and support for small and medium-sized enterprises. Public-private partnerships can also play a significant role in stimulating job creation and economic development.

Social Safety Nets: Establishing robust social safety nets is crucial to support those facing unemployment. Unemployment benefits, healthcare coverage, and access to retraining programs can help individuals meet their basic needs and regain economic stability while actively seeking employment. Such support systems alleviate the financial burden and provide a safety net during challenging times.

Conclusion :

Unemployment is a complex and persistent socioeconomic challenge that demands comprehensive solutions. By implementing effective economic policies, investing in education and skills development, promoting job creation, and providing social safety nets, societies can mitigate the impacts of unemployment and strive toward a more equitable and prosperous future. It is essential to address this issue with urgency, as reducing unemployment rates not only improves individual well-being but also fosters economic growth and social cohesion.

Title: Unemployment – A Dual Crisis of Economic Stability and Human Dignity

Unemployment is a complex and pervasive issue that affects individuals, families, and societies at large. It refers to the state of being without a job or a viable source of income despite actively seeking employment. High levels of unemployment have severe economic and social consequences, making it a pressing challenge that demands effective solutions and interventions. This essay aims to provide a comprehensive analysis of the causes, impacts, and potential remedies for unemployment, recognizing its multifaceted nature and the need for a holistic approach.

I. Understanding Unemployment

Unemployment can be classified into various types based on its causes and duration. Structural unemployment arises from shifts in the economy, such as technological advancements or changes in market demand, rendering certain jobs obsolete. Cyclical unemployment, on the other hand, is caused by economic downturns and fluctuations in business cycles. Frictional unemployment occurs when individuals are between jobs or in transition, while seasonal unemployment is linked to seasonal variations in certain industries.

II. Economic Implications

Unemployment poses significant challenges to the economy at both micro and macro levels. At an individual level, it leads to a loss of income and financial instability, making it difficult for individuals to meet their basic needs, contribute to the economy, and plan for the future. Moreover, the lack of economic opportunities leads to a decrease in consumer spending, which negatively impacts businesses and reduces their profitability. This, in turn, can trigger downsizing, closures, and a negative cycle of job losses, further exacerbating the unemployment crisis.

On a macroeconomic scale, high unemployment rates hinder economic growth and development. The decline in consumer spending decreases demand for goods and services, creating a ripple effect throughout the economy. Governments also face challenges in generating tax revenues, leading to reduced public investment in infrastructure, education, and healthcare. Additionally, increased government spending on unemployment benefits and social support places a strain on public finances, potentially leading to higher budget deficits or cuts in other areas.

III. Social Consequences

Unemployment not only impacts individuals’ economic well-being but also has profound social implications. Financial instability resulting from joblessness can lead to increased poverty levels, housing insecurity, and limited access to healthcare, further exacerbating social inequalities. The psychological toll of unemployment cannot be overlooked, as individuals may experience feelings of anxiety, depression, low self-esteem, and a loss of purpose. This can strain relationships, lead to social isolation, and create a sense of hopelessness among the unemployed.

Furthermore, long-term unemployment can result in skills deterioration and a loss of work experience, making it increasingly difficult for individuals to re-enter the labor market. This perpetuates a cycle of unemployment and hinders upward social mobility, reinforcing existing inequalities and social divisions.

IV. Causes of Unemployment

Unemployment is influenced by a combination of economic, structural, and policy-related factors. Economic downturns, such as recessions or financial crises, can lead to widespread job losses as businesses struggle to stay afloat. Technological advancements and automation also contribute to job displacement, particularly in industries that rely heavily on manual labor. Globalization and outsourcing practices can result in the relocation of jobs to countries with lower labor costs, further aggravating unemployment in certain regions.

Inadequate education and skills training also contribute to unemployment. Rapid changes in the labor market demand individuals with up-to-date skills and knowledge. Failure to adapt and provide relevant training can leave individuals ill-equipped to secure employment in sectors with higher demand.

V. Addressing Unemployment

Effectively addressing unemployment requires a comprehensive approach that combines economic policies, education and skills development, job creation initiatives, and social safety nets. Some potential strategies include:

Economic Policies
Education and Skills Development
Job Creation and Support
Social Safety Nets

Economic Policies:

Governments should implement policies that foster a conducive business environment, promote investment, and stimulate job creation. This may involve reducing bureaucratic barriers, providing incentives for entrepreneurship and innovation, and investing in infrastructure projects to generate employment opportunities.

Education and Skills Development:

A focus on education and skills training is crucial to equip individuals with the necessary competencies for available job opportunities. Collaboration between educational institutions, employers, and government agencies can help bridge the skills gap and align education with labor market needs. Upskilling and reskilling programs should be promoted to ensure individuals can adapt to evolving job requirements.

Job Creation and Support:

Governments should prioritize job creation initiatives in sectors with growth potential, such as renewable energy, healthcare, technology, and infrastructure development. This can be achieved through investment incentives, public-private partnerships, and targeted industry development strategies. Additionally, providing job placement services, vocational training, and financial assistance to unemployed individuals can enhance their employability and facilitate their transition back into the workforce.

Social Safety Nets:

Establishing robust social safety nets is essential to provide temporary relief and assistance to those facing job loss. Unemployment benefits, healthcare coverage, and support for retraining can help individuals meet their basic needs and regain economic stability while actively seeking employment. Such measures help alleviate the negative impacts of unemployment and support individuals during periods of transition.

Unemployment is a dual crisis of economic stability and human dignity, impacting individuals and societies on multiple levels. The economic and social consequences of unemployment demand comprehensive and coordinated efforts to address its causes and mitigate its impacts. By implementing effective economic policies, investing in education and skills development, promoting job creation, and providing robust social safety nets, societies can strive towards reducing unemployment rates and creating a more inclusive and prosperous future for all.

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Unemployment in the time of COVID-19: A research agenda ☆

David l. blustein.

a Boston College, United States of America

b University of Florida, United States of America

Joaquim A. Ferreira

c University of Coimbra, Portugal

Valerie Cohen-Scali

d Conservatoire National des Arts et Métiers, France

Rachel Gali Cinamon

e University of Tel Aviv, Israel

Blake A. Allan

f Purdue University, United States of America

This essay represents the collective vision of a group of scholars in vocational psychology who have sought to develop a research agenda in response to the massive global unemployment crisis that has been evoked by the COVID-19 pandemic. The research agenda includes exploring how this unemployment crisis may differ from previous unemployment periods; examining the nature of the grief evoked by the parallel loss of work and loss of life; recognizing and addressing the privilege of scholars; examining the inequality that underlies the disproportionate impact of the crisis on poor and working class communities; developing a framework for evidence-based interventions for unemployed individuals; and examining the work-family interface and unemployment among youth.

This essay reflects the collective input from members of a community of vocational psychologists who share an interest in psychology of working theory and related social-justice oriented perspectives ( Blustein, 2019 ; Duffy, Blustein, Diemer, & Autin, 2016 ). Each author of this article has contributed a specific set of ideas, which individually and collectively reflect some promising directions for research about the rampant unemployment that sadly defines this COVID-19 crisis.

Our efforts cohere along several assumptions and values. First, we share a view that unemployment has devastating effects on the psychological, economic, and social well-being of individuals and communities ( Blustein, 2019 ). Second, we seek to build on the exemplary research on unemployment that has documented its impact on mental health ( Paul & Moser, 2009 ; Wanberg, 2012 ) and its equally pernicious impact on communities ( International Labor Organization, 2020b ). Third, we hope that this contribution charts a research agenda that will inform practice at individual and systemic levels to support and sustain people as they grapple with the daunting challenge of seeking work and recovering from the psychological and vocational fallout of this pandemic.

The advent of this period of global unemployment is connected causally and temporally to considerable loss of life and illness, which is creating an intense level of grief and trauma for many people. The first step in developing a research agenda for unemployment during the COVID-19 era is to describe the nature of this process of loss in so many critical sectors of life. A major research question, therefore, is to what extent does this unemployment crisis vary from previous bouts of unemployment which were linked to economic fluctuations? In addition, exploring the role of loss and trauma during this crisis should yield research findings that can inform psychological and vocational interventions as well as policy guidance to support people via civic institutions and communities.

1. Recognizing and channeling our own privilege

In Joe Pinker's (2020) Atlantic essay entitled, “ The Pandemic Will Cleave America in Two”, he highlights two distinct experiences of the pandemic. One is an experience felt by those with high levels of education in stable jobs where telework is possible. Lives are now more stressful, work has been turned upside down, childcare is challenging, and leaving the house feels ominous. The other is an experience felt by the rest of the working public – those who cannot work from home and thus are putting themselves at risk every day, whose jobs have been either lost or downsized, and who are wondering not only if they will catch the virus but whether they have the means and resources to survive. As psychologists and professors, the vast majority of “us” (those writing this essay and those reading it) are extremely fortunate to be in the first group. The pandemic has only served to exacerbate the extent of this privilege.

Given our relative position of power, what are ways we can change our research to be more meaningful and impactful to those outside of our bubble? We propose that the recent work on radical healing in communities of color – where the research is often done in collaboration with the participants and building participant agency is an explicit goal - can inform our path forward ( French et al., 2020 ; Mosley et al., 2020 ). Work has always been a domain where individuals experience distress and marginalization. However, in the current pandemic and into the unforeseeable future, this will only exponentially increase. Sure, we can do surveys about people's experiences and provide incentives for their time. And of course qualitative work will allow us to more directly connect with participants and hear their voices. But what is most needed is research where participants receive tangible benefits to improve their work lives. We, as privileged scholars, need to think about how we can use our expertise in studying work to infuse our studies with real world benefits. We see this as occurring on a spectrum in terms of scholars' time and resources available – from information sharing about resources to providing job-seeking or work-related interventions. In our view, now is the time to truly commit to using work-related research not just as a way to build scholarly knowledge, but as a way to improve lives.

2. Inequality and unemployment

Focusing research efforts on real-world benefits means acknowledging how the COVID-19 pandemic has exposed and exacerbated existing inequities in the labor market. Millions of workers in the U.S. have precarious jobs that are uncertain in the continuity and amount of work, do not pay a living wage, do not give workers power to advocate for their needs, or do not provide access to basic benefits ( Kalleberg, 2009 ). Power and privilege are major determinants of who is at risk for precarious work, with historically marginalized communities being disproportionately vulnerable to these job conditions ( International Labor Organization, 2020a ). In turn, people with precarious work experience chronic stress and uncertainty, putting them at risk for mental health, physical, and relational problems ( Blustein, 2019 ). These risk factors may further worsen the effects of the COVID-19 crisis while simultaneously exposing inequities that existed before the crises.

The COVID-19 pandemic is an opportunity for researchers to define and describe how precarious work creates physical, relational, behavioral, psychological, economic, and emotional vulnerabilities that worsen outcomes from crises like the COVID-19 pandemic (e.g., unemployment, psychological distress). For example, longitudinal studies can examine how precarious work creates vulnerabilities in different domains, which in turn predict outcomes of the COVID-19 pandemic, including unemployment and mental health. This may include larger scale cohort studies that examine how the COVID-19 crisis has created a generation of precarity among people undergoing the school-to-work transition. Researchers can also study how governmental and nonprofit interventions reduce vulnerability and buffer the relations between precarious work and various outcomes. For example, direct cash assistance is becoming increasingly popular as an efficient way to help people in poverty ( Evans & Popova, 2014 ). However, dominant social narratives (e.g., the myth of meritocracy, the American dream) blame people with poor quality work for their situations. Psychologists have a critical role in (a) documenting false social narratives, (b) studying interventions to provide accurate counter narratives (e.g., people who receive direct cash assistance do not spend money on alcohol or drugs; most people who need assistance are working; Evans & Popova, 2014 ), and (c) studying how to effectively change attitudes among the public to create support for effective interventions.

3. Work-family interface

Investigating the work-family interface during unemployment may appear contradictory. It can be argued that because there is no paid work, the work-family interface does not exist. But ‘work’ is an integral part of people's lives, even during unemployment; for example, working to find a job is a daunting task that is usually done from home. Thus, the work-family interface also exists during unemployment, but our knowledge about this is limited. Our current knowledge on the work-family interface primarily focuses on people who work full-time and usually among working parents with young children ( Cinamon, 2018 ). As such, focusing on the work-family interface during periods of unemployment represents a needed research agenda that can inform public policy and scholarship in work-family relationships.

The rise in unemployment due to COVID-19 relates not only to the unemployed, but also to other family members. Important research questions to consider are how are positive and negative feelings and thoughts about the absence of work conveyed and co-constructed by family members? What family behaviors and dynamics promote and serve as social capital for the unemployed and for the other members of the family? Do job search behaviors serve as a form of modeling for other family members? What are the experiences of unemployed spouses and children, and how do these experiences shape their own career development? These issues can be discerned among unemployed people of different ages, communities, and cultures.

Several research methods can promote this agenda. Participatory action research can enable vocational researchers to be proactive and involved in increasing social solidarity. This approach requires mutual collaboration between the researcher and families wherein one of the parents is unemployed. By giving them voice to describe their experiences, thoughts, ideas, and suggested solutions, we affirm inclusion of the individuals living through the new reality, thereby conveying respect and acknowledgment. At the same time, we can bring ideas, knowledge, and social connections to the families that can serve as social capital. In addition, longitudinal quantitative studies among unemployed families that explore some of the issues noted above would be important as a means of exploring how the new unemployment experience is shaping both work and relationships. We also advocate that meaningful incentives be offered to participants in all of these studies, such as online job search workshops and career education interventions for adolescents.

4. Strategies for dealing with unemployment in the pandemic of 2020

Forward-looking governments and organizations (such as universities) should begin thinking about how to deal with the immediate and long-term consequences of the economic crisis created by COVID-19, especially in the area of unemployment. Creating meaningful interventions to assist the newly unemployed will be difficult because of the unprecedented number of individuals and families that are affected and because of the diverse contextual and personal factors that characterize this new population. Because of this diversity of contextual and personal factors, different interventions will be required for different patterns of individual/contextual characteristics ( Ferreira et al., 2015 ).

In broad outline, a research program to address the diversity of issues identified above could be envisioned to consist of several distinct phases: First, it would be necessary to carefully assess the external circumstances of the unemployed individual's job loss, including the probability of re-employment, financial condition, family composition, and living conditions, among others. Second, an assessment should be made of the individual's strengths and growth edges, particularly as they impact the current situation. These assessments could be performed via paper or online questionnaire. Based on these initial assessments, the third phase would involve using statistical analyses such as cluster analysis to form distinct groups of unemployed individuals, perhaps based in part on the probability of re-employment following the pandemic. The fourth phase would focus on determining the types (and/or combinations) of intervention most appropriate for each group (e.g., temporary government assistance; emotional support counseling; retraining for better future job prospects; relocation, etc.). Because access to specific types of assistance is frequently a serious challenge, especially for underprivileged individuals, the fifth phase should emphasize facilitating individuals' access to the specific assistance they need. Finally, the sixth phase of research should evaluate the efficacy of this approach, although designing such a large research program in a crisis situation requires ongoing process evaluation throughout the design and implementation stages of the research program.

5. Unemployment among youth

As reflected in a recent International Labor Organization (2020a) report on the impact of the COVID-19 crisis, youth were already vulnerable within the workforce prior to the crisis; the recent advent of massive job losses and growing precarity of work is having particularly painful impacts on young people across the globe. The COVID-19 economic crisis with vast increases in unemployment (and competition between workers) and the probable growth of digitalization may result in a major dislocation of young workers from the labor market for some time ( International Labor Organization, 2020b ). To provide knowledge to meet this daunting challenge, researchers should develop an agenda focusing on two major components—the first is a participatory mode of understanding the experience of youth and the second is the development of evidence-based interventions that are derived from this research process.

The data gathering aspect of this research agenda optimally should focus on understanding unemployed youths' perception of their situation (opportunities, barriers, fears, and intentions) and of the new labor market. We propose that research is needed to unpack how youth are constructing this new reality, their relationship to society, to others, and to the world. This crisis may have changed their priorities, the meaning of work, and their lifestyle. For example, this crisis may have led to an awareness of the necessity of developing more environmentally responsible behaviors ( Cohen-Scali et al., 2018 ). These new life styles could result in skills development and increased autonomy and adaptability among young people. In addition, the focus on understanding youths' experience, which can encompass qualitative and quantitative methods, should also include explorations of shifts in youths' sense of identity and purpose, which may be dramatically affected by the crisis. The young people who are without work should be involved at each step of the research process in order to improve their capacities, knowledge, and agency and to ensure that the research is designed from their lived experiences.

Building on these research efforts, interventions may be designed that include individual counseling strategies as well as systemic interventions based on analyses of the communities in which young people are involved (for example, families and couples and not only individuals). In addition, we need more research to learn about the process of collective empowerment and critical consciousness development, which can inform youths' advocacy efforts and serve as a buffer in their career development ( Blustein, 2019 ).

6. Conclusion

The research ideas presented in this contribution have been offered as a means of stimulating needed scholarship, program development, and advocacy efforts. Naturally, these ideas are not intended to be exhaustive. We hope that readers will find ideas and perspectives in our essay that may stimulate a broad-based research agenda for our field, optimally informing transformative interventions and needed policy interventions for individuals and communities suffering from the loss of work (and loss of loved ones in this pandemic). A common thread in our essay is the recommendation that research efforts be constructed from the lived experiences of the individuals who are now out of work. As we have noted here, their experiences may not be similar to other periods of extensive unemployment, which argues strongly for experience-near, participatory research. We are also advocating for the use of rigorous quantitative methods to develop new understanding of the nature of unemployment during this period and to develop and assess interventions. In addition, we would like to advocate that the collective scholarly efforts of our community include incentives and outcomes that support unemployed individuals. For example, online workshops and resources can be shared with participants and other communities as a way of not just dignifying their participation, but of also providing tangible support during a crisis.

In closing, we are humbled by the stories that we hear from our communities about the job loss of this pandemic period. Our authorship team shares a deep commitment to research that matters; in this context, we believe that our work now matters more than we can imagine.

☆ The order of authorship for authors two through six was determined randomly; each of these authors contributed equally to this paper.

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Undoing the Stigma of Unemployment

Man in business suit disintegrating into a flurry of papers

W ith the looming 2024 elections in mind, one of the most discussed puzzles of our time is why Americans report feeling economically anxious despite a low unemployment rate, declining inflation, and other positive economic indicators. My research on American workers points to one of the root causes of this anxiety. It focuses on the kind of workers we might expect to have little to worry about—experienced, college-educated, white-collar professionals—including some with advanced degrees from elite universities like Harvard and MIT. Focusing on this group reveals that in the contemporary United States the careers of even the most privileged workers are anxiety-filled and precarious.

Regardless of prestigious degrees and impressive work experience, the careers of almost all American workers are made unpredictable by routine layoffs. It was not always like this. In the post-World War II era white-collar workers at large companies could reasonably expect to stay at one company for decades. But since the 1980s job security has crumbled, and currently about 3 out of 4 American workers become unemployed at some point in their career.

Yet, economic anxiety extends beyond mere layoffs. It is foremost rooted in the fear of not being able to bounce back after a layoff, and getting trapped in long-term unemployment or low-wage work. This fear is well-founded, even for experienced college-educated professionals. A 2013 study by the Economic Policy Institute reveals that if a college-educated worker becomes unemployed they are as likely as any other worker—of whatever level of education—to get trapped in long-term unemployment. Even after a prolonged search, many get stuck in low-wage jobs. Downward mobility does not show up in unemployment statistics, but it shatters lives.

American workers are anxious because anyone can fall. There are no reliable shields against an invisible but powerful force which can rapidly erase past educational and professional achievements: stigma. Once a worker becomes unemployed they are stigmatized in the eyes of potential employers. This can be clearly seen in studies where researchers send fake resumes to companies with real job openings. These resumes are identical in terms of skills and qualifications and differ only in whether or not the applicant has a current employment gap. From these studies, we know that employers are far less likely to invite unemployed applicants for job interviews.

Read More: The U.S. Spends Less Than Nearly Every Country on Unemployment. That’s Why People Can’t Get Jobs.

I interviewed recruiters to gain a better understanding of the unemployment stigma. After assuring them that they will remain anonymous, the recruiters openly discussed the widely shared assumptions of employers about unemployed applicants. One recruiter explained: “A company could lay off people for a wide variety of reasons. But there is that perception that very often those folks who have been laid off or out of work for any length of time are not going to be the top people out there.” In practice, this perception often translates to an employer preference for “passive jobseekers,” referring to workers currently working and not actively looking for work; or in other words, workers who are not unemployed. Here is how one recruiter succinctly summed up the widely shared sentiment underlying the preference for passive jobseekers: “The sense is that if someone is good, they would be working.” When reflecting on it, this recruiter acknowledged that “this logic is crap,” recalling his own experience: “I was a top-performer and the whole group was laid off.” But, nonetheless, even this recruiter who recognized employers’ flawed logic, felt compelled to follow the preference of his employer clients for passive jobseekers.

It is not only employers who stigmatize. As the unemployed workers I’ve interviewed in the course of my research repeatedly emphasized, they experienced the unemployment stigma in every realm of their life, including when trying to network with former colleagues, or even when turning to their spouses or close friends for support.

The stigma of unemployment is everywhere because most of us want to believe in the myth of meritocracy—the false assumption that one’s position reflects one’s merit. The pull of this myth is evident whenever I share stories from my research. Take for example the story of Ron, one of the people I interviewed. Ron is a Harvard graduate who worked in finance for over three decades, most recently at a large and prestigious bank. After a layoff he spent three years unsuccessfully trying to get another job in banking. Today, Ron earns poverty-level wages at a department store.

When I share Ron’s story, I am inevitably asked for more details about his particular situation. A story like Ron’s is terrifying to all who hear it because if his career can go off a cliff, so can anyone’s. The thread connecting the various questions is the search for something faulty about Ron, which would reduce the anxiety of the person asking the questions about whether the same fate may await them. I am almost never asked about the hiring process or employer stigmas that may underlie Ron’s difficulties.

The questions’ focus on finding something faulty about Ron show how tenaciously we want to hold on to the belief in meritocratic predictability, that if you do the “right” things, study hard, go to a good college, and get a good job, you’ll do okay. But the dark flipside of this belief is the stigmatization of those who experience unemployment or downward mobility. Hanging on to this belief motivates us to find some reason why the unemployed are at fault for their unemployment, and hence we lead with skeptical questions—which mirror those of employers—about the talent or motivation of anyone who is out of work or has experienced downward mobility.

Ironically, while we cling to the myth of a predictable meritocracy as a way of coping with our anxiety, the myth leaves in place institutions and employer practices that guarantee our perpetual anxiety. The myth of meritocracy means that we judge and stigmatize each other, even our friends and loved ones, instead of providing empathetic support. It means that we blame individuals for what are societal shortcomings, and these shortcomings remain untouched. And ultimately, it means we remain trapped in an economic system in which we are all one layoff away from potential disaster.

The way out of this trap is to confront it head on and shine a bright light on the assumption that unemployment necessarily reflects anything about the unemployed person as opposed to the economy, employers, and the hiring system. Until we do so, we will continue to experience perpetual economic anxiety, regardless of topline economic indicators.

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Unemployment - List of Essay Samples And Topic Ideas

Unemployment refers to the state of being without a paid job while being available and seeking work. Essays on this topic could explore the causes and consequences of unemployment on both individuals and broader economies. Discussions might also address the various types of unemployment, the role of government policy in mitigating unemployment rates, and the psychological and social impacts of unemployment on individuals and communities. We have collected a large number of free essay examples about Unemployment you can find at Papersowl. You can use our samples for inspiration to write your own essay, research paper, or just to explore a new topic for yourself.

Unemployment a Major Cause of Homelessness

Homelessness or known as extreme poverty can be interpreted as a circumstance when people have no place to stay with the result that they end up live in the street, under the bridge even at the side of the river. There are 3.5 million Americans are homeless each year. Of these, more than 1 million are children and on any given night, more than 300,000 children are homeless. They who do not have an occupation are the one that is […]

Youth Unemployment

Exploring factors hindering the implementation of youth development package in addressing youth unemployment:) CHAPTER ONE 1. Introduction 1.1. Background of the study The reason for investing in young people is clear. Today, 1.2 billion adolescents stand at the challenging crossroads between childhood and the adult world (UNICEF, 2011). Youths represent 25 per cent of the working age population and account for 47 per cent (88 million) of the world’s unemployed people. An estimated 515 million young people, nearly 45 per […]

Pros and Cons of Increasing the Minimum Wage

Introduction The minimum wage is the lowest reasonable price that an employer is legally obliged to compensate for work, not including collective agreements and custom employee contracts. The federal and state governments are responsible for setting their minimum wage policies, which may differ. The aspect of wages is a grave concern in the modern world due to the discussion among economic experts, whose opinions differ on whether it should increase or stay stagnant (Kops, 2017). The increase in the minimum […]

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Unemployment and Minimum Wage in the US

In the United States minimum wage is talked about more than any other countries. Minimum wage is the lowest wage permitted by law or by a special agreement such as one with a labor union. (dictionary.com) As of right now the minimum wage that is established by the government is $7.25, while here in Colorado the minimum wage is higher than most other states being $10.20 per hour. (State Minimum Wages) Raising the minimum wage in the United States is […]

View of Students about Unemployment

This study considers the effectiveness of public and private sector SME-development programs and the current development of SMEs in AJK. The study presents several major findings and includes a brief review of international literature. To examine the status of small and medium-sized enterprises and their developmental strategies, a questionnaire survey was conducted among owners and top managers. A Chi-square test was used to analyze the information. The results reveal that SMEs face numerous challenges, including burdensome business rules and regulations, […]

The Aftermath and Effects of World War II on the United States

Despite the overall ending of World War II, the effects of the war brought both positive and negative changes to the United States. These changes included different economic, political, and social aspects that transformed America into all that it is today, and whether or not these changes where positive or negative, both are truly important to the history of the United States of America. According to the textbook, some of the positive changes that World War II brought to the […]

How does the Unemployment Rate Effect the Economy?

The rate of unemployment is more than a percentage of unemployed people, it is used as key a macroeconomic indicator when determining the health of an economy. The unemployment rate is found by taking the labor force and dividing it by the number of people who are currently searching for a job, also know as the number of unemployed people. The unemployment rate is composed from three types of unemployment: frictional, cyclical, and structural. This could create a potentially serious […]

Examining GDP and Unemployment

Research over the years has shown that unemployment rates and Gross Domestic Product (GDP) figures go hand in hand. This paper aims to define and discuss GDP, and its relation to economic growth. Additionally, the paper will discuss how the use of fiscal or monetary policies can effectively battle recession and aid in the growth of the economy, and how losing a battle to a recession can severely impact unemployment and the unemployment rate, along with other factors leading to […]

The Negative Effects of Increasing Minimum Wage

There is a current issue that is become very popular at political debates around the US; to raise the minimum wage or to not? This question rose from the Fair Labor and Standard Act of 1938 which effectively set a livable rate at which employees could sell their work. The specific question that I will be addressing is: What are the negative externalities to raising the minimum wage? Many studies, including one from the United States Bureau of Labor stated […]

Unemployment in the Country

An adage says "an idle hand is a devil's workshop". The enormous growth of unemployment in our society today calls for alarm, and it is expedient for all nations to figure out what leads to this great dilemma. Unemployment has messed up our society because of three major factors, such as increase in population, lack of encouragement for self-employment, and change in technology. One of the major causes of unemployment is increase in population. Increase in population is an event […]

Unemployment in the U.S

As indicated by the Bureau of Labor Statistics, the rate of unemployment in the United States has increased at an alarming rate. Approximately six million people in the United States are unemployed, according to deptofnumber.com. This has negatively affected the nation's economy. The statistics reveal the unemployment rates for various groups of people in the country. The rate of unemployment among men was at 7.0 percent, and approximately 6.4 percent among women. The increase in the rate of employment among […]

Increasing Minimum Wage for the Economy

Increasing the minimum wage may seem like an obvious decision for some; why wouldn't we pay poverty-stricken entry level workers more livable wages? However, there can be grave consequences that result from such drastic economic changes that must be considered, especially when these consequences hurt the intended beneficiaries. The minimum wage should not be increased, as increasing it will have a variety of negative economic consequences for businesses and workers, and it will be a change that will cause more […]

GDP and Unemployment

The gross domestic product (GDP) is the measure of goods and services produced in a country during a year (Boone 2016). When GDP is increasing, the economy is in expansion mode. When GDP is decreasing, the economy is in a recession. Economic growth occurs when the GDP increases over time. When economists use the term "economic growth," they are normally referring to sustained increases that occur over a substantial time period, rather than the quarterly changes often discussed in the […]

Long-term Unemployment

Long-term unemployment is when workers are jobless for the time set by the federal government which may enable some to receive unemployment benefits. In order to receive unemployment benefits by the Bureau of Statistics, they must actively seek employment for at least 4 weeks prior to receiving unemployment benefits. Many unemployed people become disheartened about the possibility of receiving unemployment benefits that they just lose hope. Everyone may not be recognized in this area to show the true numbers of […]

Unemployment in Zimbabwe

Unemployment rate is equivalent to the economically active group of people that is unemployed and more so looking for jobs. During the precolonial era, Zimbabwe had one of the strongest economies in Africa and at one point dubbed the "Bread basket of Africa". The British colonized Zimbabwe and therefore in the process; managed to bring investors into the country that was rich in minerals such as gold, platinum and silver. Health sectors, education and agriculture were by far the best […]

Unemployment in Society

When workers become involuntarily unemployed, there are several costs associated which they will unquestionably have to bear. These could come from the fact that there are certain firm-specific skills that an individual has, thus leading to scarce opportunities for individuals searching for jobs matching their specific skills (Lazear, 2003). Moreover, the costs could be associated with the model proposed by Harris and Holmstrom (1982), in which they stated that the workers have to be assumed to be risk averse and […]

Effects of Minimum Wage Increase on Poverty Rates

To a certain extent, I agree that it is effective in reducing poverty because it will help some workers who really come from a poor background. But if only a small percentage of the poor will benefit from it and if it helps more people who are above the poverty line than those below it, then it is not a plausible approach. If the target is to reduce poverty, then there needs to be a better solution wherein most of […]

Discussion of Government and Unemployment Insurance

Discussion 1 a). Medicare is a program by the federal government in US, which offers health cover to its citizens. The package is extended to cover old people who have 65 years and above as well as young individuals who have disabilities. The health cover plays a major role in providing financial plus health security paying many medical health services to persons it covers (Edwards, 2014). Major characteristics of this program include; many people using the program have medical problems […]

Unemployment as a Social Issue

Introduction. Unemployment is real issue in the modern society and has devastating impact on people's lives. The effects are not limited to the unemployed individual but also family members and the wider community. As unemployment is time bound, with the duration of unemployment have far reaching effects even affecting the living standards in retirement 2. The loss of an income by a parent can potentially damage the prospects of the next generation. In additional to the personal impact, unemployment is […]

Tackling Unemployment

According to the new plan, in order to keep the unemployed in the game, that is, in the labor market, they must be registered (registered) in the employment system. Also, each of them needs personalized help that will give extra points. And they will also need a so-called “labor integration agreement”, which provides for: - mentoring and assistance in finding a job; - education and vocational training; - help with housing, transport, childcare, etc .; - individual advice and support. […]

Unemployment Analysis

The U.S. Government considers a person unemployed if they are at least 16 years of age, willing and able to work, and who are actively seeking employment, but have not found a job. To be considered unemployed, someone does not have to lose a job. The unemployment rate also includes people who are returning to work, for instance, a stay at home parent returning to work. A person entering the job market for the first time, like a recently graduated […]

Main Causes why Minimum Wage should Increase

There are a lot of people around the world who struggle with money because of the minimum wage. Minimum wages have been one of the biggest topics around the United States. Minimum wage is the minimum hourly wage an employer pays an employee for work. Since 1938, when the minimum wage was first introduced at a rate of $0.25 an hour, the federal minimum wage has increased 22 times. In all 50 states of America, twenty-one states have minimum wages […]

Unemployment during the Great Depression

The stock market crash all started on black tuesday on october 24, 1929. During Black Tuesday 16,410,030 shares on the New York stock were traded in a single day. Billions of dollars were lost, wiping out thousands of investors. Tons of machines controlling the trades were shut down due to the tremendous amounts of share trades. Due to Black Tuesday, America as well as the industrial world to spiral down into what is known as the Great Depression. After this […]

Unemployment Within the Economics

Most of the socio-economic studies indicated that unemployment within the economics of crime studies is positively related to crime. Committing crime without failing while unemployed has a higher reward (Burdett et al, 2004). Unemployment shows lack of opportunity for participation in the labour market and the acquisition of legitimate earnings (Freeman, 1999). The exclusion from legitimate income opportunities raises the expected returns from crime, the economics of crime theories have confirmed. Although, most of the empirical studies show a positive […]

Unemployment Rate and Urbanization

Relationship Between Real GDP Per Capita, Inflation Rate, Unemployment Rate and Urbanization Introduction Economic growth of a country id influenced by various factors such as inflation, urbanization and unemployment. These factors can also influence economic income of a country. The relationship between inflation and real GDP per capita is one of the most widely researched topics. According to Khan & Ssnhadji, (2001), inflation implies an increase in commodity prices which results into a decrease in purchasing power, which in turn […]

Post-World War II America

World War II was coming to a close. The United States had played a large part in the war by assisting in the victory of the Allies over the Axis Powers from the time of the attack on Pearl Harbor until the Japanese surrender in the summer of 1945. The U.S. had, at first, expressed the intent to remain neutral in the war - When the WWII first began with Adolf Hitler's invasion of Poland in 1939, America portrayed itself […]

Minimum Wage and its Impact

Minimum Wage and Its Impact: An Argument for Increasing the Federal Minimum Wage Since the Industrial Era, workers in North Carolina and across the US have fought for better working conditions, less hours, no child labor, and most importantly a wage that could support life in the United States. Throughout the years, many of the state and federal governments have passed legislation to increase the minimum wage, decrease working hours, and to prevent child labor. While some states make advances […]

The Minimum Wage Must be Raised

Ellie Barraclough Mrs. Miles ENGL 201 16 Nov 2018 The Minimum Wage Must Be Raised As of July 2009, the federal minimum wage has been $7.25, which is far too low to make a living. The minimum wage must be increased for the betterment of our country. In 2016, 701,000 workers above 16 were paid the minimum wage (Bureau of Labor Statistics). Raising the minimum wage will have an increase in employment, a decrease in poverty, allow people to afford […]

Human Resource Basics

Unemployment is one of the hot issues which gets ubiquitous in the present still-sluggish economic world. In the news, issues to do with employment appears upon the silver screen. Companies tend to fire its employees for different reasons (Musella, 2018). In the actual sense terminating the firing of an employee has got its consequences if the right method is not used. Though "employment-at-will" technique offers employers the right to terminate the employees at their disposal on discretion, it cannot be […]

Automation Will Crash Democracy

Around the world, technology is constantly disrupting the workforce, with automation poised to displace humans in the fields of medicine, agriculture, and beyond. Will the rise of robots fuel a new wave of “us versus them” populism capable of undermining democracy? For some, the answer is yes. They argue that as people lose jobs to robots, the gap between the rich and poor widens, distrust in government and democratic institutions grows, and populist ideas become more attractive to those who […]

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Essay About Unemployment Unemployment and crime are the two major issues faced by many societies. These issues have prompted highly debated views on whether there is a correlation between the two. This essay will review on several sources and their research on the topic of Unemployment and Crime. It has been highly discussed that unemployment does lead to crime. In his journal article, Baron (2008) examined the role of unemployment in the criminal behaviour of 400 homeless street youths by adopting Agnew’s general strain theory (ICT). He wanted to find out if the people’s interpretations of their labour market situation had a role to play in influencing criminal behaviour. By using the general strain theory, it “focuses attention on how objective experiences, subjective interpretations, and emotional reactions can all be linked to crime” (Baron, 2008 p. 402). His findings have shown that negative emotional reactions such as anger is a mediating role between unemployment and crime and that it is anger over unemployment that influences crime. However, his research had limitations as the data collected were cross-sectional and thus causing the current emotional reactions, perceptions of deprivation, and punishment to be correlated with past criminal behaviour. Carlson and Michalowski (1997) also suggest that the relationship between unemployment and crime is shaped not merely by the fact of unemployment but instead by its social meaning within the developmental stage of social structures of crime. In this journal article, Carlson and Michalowski (1997) analysed whether the inconsistency in findings of the impact of unemployment on crime is the result of historical contingency caused by changes in the social structures of accumulation (SSAs) correlated with the growth of U.S capitalism in the twentieth century. By examining the relationship between unemployment and crime at different phases of the U.S economic development, Carlson and Michalowski (1997) found that the impact of unemployment on crime is in fact historically contingent and that there was a greater impact in reducing crime when economic distress is better relieved by having structural unemployment. This journal however had a specific focus on crimes such as burglary, robbery, assault and homicide. It did not consider other forms of crime that could possibly steer its findings in a different direction. Supplementary to the relationship between unemployment and crime, Chappell and Sykes (1991) examined the changing commitment rates to U.S. state prisons to resolve the questionable interpretations of how unemployment, crime and imprisonment are related.

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Essay on Unemployment Rate

Introduction

The essay is focused on examining the issue of unemployment among people in various societies and countries around the world, the reasons for unemployment, types of unemployment, ways to overcome the issue of unemployment and examine the costs associated with unemployment. Unemployment is a major social issue among people in the economic market today, there are several reasons for unemployment in economics depending on the type of unemployment available, these can be directed to government, employer, supply of labor, among others. The types of unemployment can be directed to frictional unemployment, structural unemployment, cyclical unemployment, and seasonal unemployment. There is a need to solve the unemployment problem in the social economies, this can be done in several ways including enhancing political stability, promoting education, controlling the growth of population, among others. The issue of unemployment in the social economies has several costs ranging from loss of income among individuals, low standard of living among unemployed people, low production, and economic growth, among other costs.

Unemployment and reasons for unemployment

Unemployment is a major problem in various countries around the world, this is a situation whereby people do not have any work that can generate income and are actively searching for a job (Hauser & Burrows, 2018). Individuals in this situation are mostly employable and are actively searching for jobs. This can also include people who are working in jobs that are below their qualifications, experience, and satisfaction. The situation where there is a high level of unemployment will result in several economic distress and problems. The situation of unemployment hinders people to engage in productive work to facilitate development in the country. This will result in a decrease in economic productivity and development (Hauser & Burrows, 2018).

The high growth of the population can result in unemployment challenges when the country is not developing and when fewer job opportunities are in the country. Also, people who depend on agriculture production work can become unemployed when the season is not favorable for plant growth. A decrease in industrialization and investment can account for unemployment in several countries that are not developing, the situation where there are few industries and investments are not available will have a severe influence on the employment of people in a developing country. Improper economic planning can also result in unemployment challenges, situations, where there is a gap between supply and demand of labor, which will result in unemployment.

Various types of unemployment

Hauser & Burrows, (2018) Types of unemployment can include frictional, cyclical, structural, institutional, and seasonal unemployment. These types of unemployment are based on voluntary and involuntary unemployment. Frictional unemployment is a situation where a person voluntarily moves from one job to another in a country. The time spent to get another job can be linked to unemployment, it may take some time before the person gets another job. Some people move to another location to search for a new job which can take some time before getting the desired job. When fresh graduate students’ transit to search for a job, the time spent before getting a job is also linked to frictional unemployment. The time can be very short or longer depending on the availability of the job the applicant is seeking (Hwang, 2019).

Hwang, (2019) cyclical unemployment is another type of unemployment where the decrease in production and demand for products results in a decrease in employment of new workers. The situation where a company is not getting enough purchases of goods from the market will decrease income level and ability to pay workers. This can lead to a decrease in salary, and an increase in savings. People will not be able to buy enough goods when their salary is decreased and savings are increased. The situation is cyclical in nature but can be resolved when economic growth and investment are facilitated in the country.

Structural unemployment is when there is a new change in the operation of a business, technology, and production. The situation whereby a company adapts to a new technological system or process will result in laying off workers who do not have the relevant skills for the new changes. There will be a need for retraining of staffs or workers to understand how to use new systems in the company (Wolcott et al., 2020).

Institutional unemployment occurs when there are changes in policies, institutional incentives, and interference of the free market condition in a country. The change in employment policies and strategies can result in laying off some workers in order to regulate the new policies.

Seasonal unemployment is a situation whereby workers that depend on jobs that operate in different seasons are not having jobs due to the unfavorable season or weather conditions to engage in such jobs. An example is farming, among others.

Various ways to overcome unemployment

Education is very important in solving the problem of unemployment, educating people will help increase their skills and ability to be employed and start their own businesses. Education will enable workers to advance their skills and employability level. The education system has to be improved in order to enhance the admission of students into higher studies in colleges and universities. The availability and improvement of vocational institutions can also facilitate the development of skills among students in the higher level of education. Students from these training institutions can start their own businesses after completion and reduce the unemployment rate in the country. The industrial technique can be enhanced to identify the employment needs of the country and improve labor-intensive technology in order to employ more people instead of using machines and other fully technological systems (Sari, 2019).

There is a need to design a policy to solve seasonal unemployment issues, mostly in the agriculture sector, the provision of alternative job opportunities for workers who depend on seasonal jobs will help reduce the unemployment rate during unfavorable seasons. Also, the use of multiple cropping can be encouraged in order to facilitate the production of crops favorable in any given season. The addition of varied plantations, animal husbandry, food processing, and other farming practices will enhance employment.

The use of communication and employment exchanges can be provided to enhance the dissemination of information regarding job opportunities available anytime. This will alert the public in order to enhance the employment rate and reduce frictional unemployment. There is a need to assist self-employed individuals in order to facilitate their work and production. This can be in a form of financial support, technical training, and raw material support in order to improve self-employed businesses.

The development and implementation of policies that encourage the development of more jobs in a country will help reduce unemployment. There is a need to increase development of jobs in a country and increase employment of labor in order to help them gain benefits and contribute towards societal development. There can also, be enhanced employment program facilitation, this is done by setting plans to develop infrastructure, power supply, roads, and other facilities that encourage production (Sari, 2019).

Costs associated with unemployment

There are some costs associated with unemployment which include individual and societal costs; the major cost to unemployed individuals is income lost, this is the situation where a person does not get any income due to unemployment. Unemployment affects people’s ability to earn money. The situation can hinder people’s ability to finance and take good care of themselves. The well-being of people becomes disrupted due to a lack of income to support themselves. The cost to society is a reduction in productivity through a decrease in goods and services, the people do not have money to purchase goods and services, this also affects the performance of companies and organizations in the society. The situation also causes waste of resources including labor, since the economy does not utilize these resources efficiently. The situation, when people take up jobs below their qualifications, brings about inefficient use of labor. This also results in the loss of skills and labor capital in the economy (Alrasheedy, 2019).

The situation of unemployment can affect the health of people in the country, this includes the mental and physical wellbeing of individuals in the country. There is an incidence of family and social unrest, an increase in the crime rate, and other bad practices in society. The situation of unemployment can cause disruption on confidence and self-esteem among people who are unemployed (Alrasheedy, 2019). The situation can drastically deplete the skills, motivation, and well-being of people in the country. The situation of unemployment also causes loss of tax and revenue to the government, development of the country will be slowed and hindered. The expenditure incurred by the government increases as a result of providing support to unemployed people in the country. The situation of a high rate of unemployment will bring about severe problems to individuals, the situation where the unemployment problem takes longer duration, the country resort to borrowing from other countries and becoming indebted to those countries.

Unemployment is a major social issue in many countries in the world, the situation of unemployment is a challenge to the government, employers, and individuals in the society. The types of unemployment can be directed to frictional unemployment, structural unemployment, cyclical unemployment, and seasonal unemployment. The situation of unemployment can be identified when a person is actively seeking a job but does not get any available. This can also include people who are working in jobs that are below their qualifications, experience, and satisfaction. The situation where there is a high level of unemployment will result in several economic distress and problems. The situation of unemployment hinders people to engage in productive work to facilitate development in the country. This will result in a decrease in economic productivity and development.

The two categories of unemployment are voluntary and involuntary unemployment, the situation where one moves out from a job to search for another is known as voluntary unemployment, and a situation where a person is laid off and now looking for a job is known as involuntary unemployment. There are several causes of unemployment, including population growth, slow economic development, people who depend on seasonal jobs such as agriculture production work can become unemployed. A decrease in industrialization and investment can account for unemployment, improper economic planning can also result in unemployment challenges. The situation of unemployment can result in social unrest, an increase in the crime rate, and other bad practices in society. The situation of unemployment can cause disruption on confidence and self-esteem among people who are unemployed. Unemployment can be solved when there is education, development of new jobs, investment, and support of self-employed workers.

Alrasheedy, A. (2019). The cost of unemployment in Saudi Arabia. International Journal of Economics and Finance, 11 (11), 1-30.

Hauser, M. M., & Burrows, P. (2018). The Economics of Unemployment Insurance (1st ed.). London: Routledge.

Hwang, G. J. (2019). How fair are unemployment benefits? The experience of East Asia. International Social Security Review, 72 (2), pp.49-73.

Sari, A. I. (2019). Social Entrepreneurs and Innovation for the Unemployment. International Journal of Economics and Management, 1 (3), pp.72-79.

Wolcott, E., Ochse, M. G., Kudlyak, M., & Kouchekinia, N. A. (2020). Temporary Layoffs and Unemployment in the Pandemic. FRBSF Economic Letter , p.34.

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Copy URL https://www.pbs.org/newshour/economy/u-s-inflation-ticked-down-slightly-last-month-in-the-first-drop-of-2024

U.S. inflation ticked down slightly last month in the first drop of 2024

WASHINGTON (AP) — Consumer inflation in the United States cooled slightly last month after three elevated readings, likely offering a tentative sigh of relief for officials at the Federal Reserve as well as President Joe Biden’s re-election team.

READ MORE: Federal Reserve Chair Powell downplays potential for a rate hike despite higher price pressures

Prices rose 0.3 percent from March to April, the Labor Department said Wednesday, down slightly from 0.4 percent the previous month. Measured year-over-year, inflation ticked down from 3.5 percent to 3.4 percent. And a measure of underlying inflation, which excludes volatile food and energy costs, fell to the lowest level in three years.

Inflation had been unexpectedly high in the first three months of this year after having steadily dropped in the second half of 2023. The elevated readings had dimmed hopes that the worst bout of inflation in four decades was being rapidly tamed.

Fed Chair Jerome Powell responded by dropping his previous suggestions that interest rate cuts were likely this year. Instead, he stressed that the Fed’s policymakers need “greater confidence” that inflation is falling to their 2 percent target level before they would reduce borrowing rates from high levels.

Wednesday’s report of moderating price increases may provide a dose of reassurance that inflation could be resuming its slowdown toward the Fed’s target.

Grocery prices slipped in April, providing a break to shoppers. Egg prices, which have been volatile after a bout of avian flu, fell 7.3 percent. New and used car prices also dropped. By contrast, prices for gas and clothing both jumped.

Excluding volatile food and energy costs, so-called core prices rose 0.3 percent from March to April after three straight months of 0.4 percent increases. Measured with a year earlier, core prices increased 3.6 percent in April, down from 3.8 percent in March. The Fed closely tracks core prices, which tend to provide a better read of where inflation is headed.

Apartment rental prices remained stubbornly high, climbing 0.4 percent from March to April. Average apartment rents are 5.4 percent higher than they were a year earlier. Rental and other housing costs accounted for two-thirds of the year-over-year increase in core prices.

Whether inflation continues its decline could have a significant effect on the presidential race. Republican critics of Biden have sought to pin the blame for high prices on the president and use it to try to derail his re-election bid. While hiring remains robust and wage growth, on average, healthy, prices remain generally well above their pre-pandemic levels.

READ MORE: U.S. consumer sentiment drops to 6-month low on inflation, unemployment fears

On Tuesday, Powell reiterated that he still expects inflation to ultimately reach the central bank’s 2 percent target. But in remarks during a panel discussion in Amsterdam, Powell acknowledged that his confidence in that forecast has weakened after three straight months of elevated price readings. Inflation has fallen sharply from 9.1 percent in the summer of 2022 but is higher now than in June 2023, when it first touched 3 percent.

The Fed’s policymakers have raised their key interest rate to a 23-year high of 5.3 percent in an effort to quell rising prices. Powell underscored Tuesday that the Fed will keep its rate at that level for as long as needed to fully conquer inflation, a signal that rate cuts won’t begin as soon as many people had hoped.

Economists are divided over whether the high inflation figures in recent months reflect a re-acceleration in price growth or are merely echoes of pandemic-related price distortions. While auto insurance has soared 22 percent from a year ago, for example, that surge may reflect factors specific to the auto industry: New car prices jumped during the pandemic, and insurance companies are now seeking to offset the higher repair and replacement costs by raising premiums.

Stubbornly elevated apartment rents are another key factor behind persistent inflation. Rents soared during the pandemic as more Americans chose to live alone or sought more living space. Though rents for new leases are rising much more slowly, consistent with pre-pandemic patterns, the earlier increases are still elevating the government’s price data.

Some economists point to steady consumer spending on restaurant meals, travel and entertainment, categories where in some cases price increases have been elevated, likely reflecting strong demand.

Powell, in his remarks Tuesday, also highlighted rising rents as a key factor keeping inflation high. He called that “a bit of a puzzle” because measures of new apartment leases show new rents barely increasing. Such weaker data has apparently yet to flow into the government’s measures, which cover all rents, including for tenants who renew their leases and are facing bigger increases. Powell said the government’s measures should eventually show rent growth easing.

The Fed chair also acknowledged that the economy “is different this time” because so many Americans refinanced their mortgages at very low rates before the Fed began raising borrowing costs in March 2022. Many large businesses also locked in low rates at that time.

“It may be,” he said, that the Fed’s rate policy “is hitting the economy not quite as strongly as it would have if those two things were not the case.”

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Inflation Moderated Slightly in April, Offering Some Relief for Consumers

Prices rose 3.4 percent in April from a year earlier, a slight easing from the previous month and a positive sign for the Federal Reserve.

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+3.6% excluding

food and energy

+3.4% in April

By Ben Casselman

Finally, some good news on inflation.

The Consumer Price Index climbed 3.4 percent in April from a year earlier, down from 3.5 percent in March, the Labor Department said on Wednesday . The “core” index — which strips out volatile food and fuel prices in order to give a sense of the underlying trend — rose 3.6 percent last month, down from 3.8 percent a month earlier. It was the lowest annual increase in core inflation since early 2021.

The report followed three straight months of uncomfortably rapid price increases that rattled investors and worried policymakers at the Federal Reserve . Economists cautioned that one month of encouraging data was far from enough to put those worries to rest. But they said the data should ease concerns, at least for now, that inflation was re-accelerating.

“I would characterize it as a small step in the right direction,” said Stephen Stanley, the chief U.S. economist at Santander.

Both overall and core prices rose 0.3 percent from the previous month, down from 0.4 percent in February and March.

Inflation fell rapidly last year, giving rise to hopes that the Fed was on the verge of succeeding in its effort to rein in price increases without causing a recession, and that the central bank could soon begin to cut interest rates, which are currently set at about 5.3 percent. But progress stalled in the first three months of the year, and investors have all but given up hope of rate cuts before September.

The inflation report on Wednesday is unlikely to change those expectations on its own. But it could be a step toward giving policymakers confidence that inflation is returning to normal, which they have said they need before they begin to cut rates. And it is likely to further reduce the chances — already remote — that policymakers could decide to raise rates rather than cut them.

“I think there will be something of a sigh of relief from the Fed, but at the same time there’s still work to be done,” said Sarah House, a senior economist at Wells Fargo.

Investors cheered the news. The S&P 500 index rose 1.2 percent to close at a record high. The yield on the two-year Treasury note, which is sensitive to changes in interest rate expectations, fell sharply after the numbers were released, as investors appeared to have dialed back how long they expected interest rates to stay elevated.

The report was also a welcome break for the White House from a string of bad inflation data that has helped inflame voter discontent over President Biden’s handling of the economy.

“I know many families are struggling, and that even though we’ve made progress we have a lot more to do,” Mr. Biden said in a statement released by the White House. He called bringing down inflation his “top economic priority.”

Monthly changes in April

Gasoline (all types)

Motor vehicle insurance

Cereals and bakery products

Hospital services

Medical care commodities

Rent of primary residence

Food away from home

All items excl. food, energy

Dairy, related products

Alcoholic beverages

Physicians’ services

Tobacco products

Motor vehicle repair

Electricity

Nonalcoholic beverages

New vehicles

Meats, poultry, fish, eggs

Fruits, vegetables

Airline fares

Used cars, trucks

Piped utility gas service

All items excluding food and energy

Dairy and related products

Tobacco and smoking products

Motor vehicle maintenance and repair

Nonalcoholic beverages and materials

Meats, poultry, fish and eggs

Fruits and vegetables

Used cars and trucks

Wednesday’s data showed notable progress on several fronts. New and used car prices and airline fares fell outright in April. So, crucially, did the price of groceries, long one of the most painful categories for consumers. Even housing, the largest component of the inflation index and one of the most stubborn , showed cautious hints of improvement.

Gasoline prices, on the other hand, rose a seasonally adjusted 2.8 percent in April from March. Car insurance rates also continued to surge, albeit more slowly than in the month before. And services prices more generally continued to rise at a faster clip than policymakers were likely to consider acceptable.

Still, while Wednesday’s report contained some mixed signals, it did at least stop the bleeding after several months of troubling news.

Had the data come in hotter than anticipated yet again, it could have led policymakers to conclude that high rates need even more time than investors currently expect to bring inflation to heel. At an event in Amsterdam on Tuesday , Jerome H. Powell, the Fed chair, reiterated that recent inflation readings had made him more cautious about cutting rates.

“We did not expect this to be a smooth road, but these were higher than I think anybody expected,” he said. “What that has told us is that we will need to be patient and let restrictive policy do its work.”

Any further delay would add to the pain for low- and moderate-income Americans, who are increasingly struggling to manage the burden of higher borrowing costs. On Tuesday, the Federal Reserve Bank of New York released data showing that a rising share of borrowers are falling behind on their credit card bills as rates on those debts have skyrocketed. And data from the Commerce Department on Wednesday showed that retail sales were flat in April, a possible sign of caution among inflation-weary consumers.

The inflation data on Wednesday contained hints of improvement in one of the most important and troublesome categories of inflation: housing. Rents were up 5.4 percent in April from a year earlier, the smallest annual gain in nearly two years.

But progress on housing costs remains uncomfortably slow. For more than a year, forecasters have been predicting that the government’s measure of housing inflation would ease, citing private-sector data showing rent increases slowing.

Instead, housing costs in the Consumer Price Index have continued to rise more quickly than before the coronavirus pandemic, a pattern that continued in April. And recently, some private-sector measures have begun to show rents rising faster again as well.

“The narrative on rents was that they were going to continue to soften as 2024 played out,” said Rick Palacios Jr., the director of research for John Burns Research and Consulting, a real estate data firm. “We don’t see that. If anything, we see it picking up.”

Housing is by far the largest monthly expense for most families, which means that it also plays an outsize role in inflation calculations. If rents keep rising at their current rate, it will be hard for inflation overall to return to normal.

Still, taken as a whole, the April data could restore some confidence that policymakers will be able to keep bringing down inflation without causing a recession. The Fed appeared on track to do that last year, defying predictions that high interest rates would inevitably cause a large increase in unemployment.

But as the fight has dragged on, some economists have begun to question that narrative. Job growth slowed more than expected in April, and the unemployment rate has gradually crept up.

“The labor market has held up so well,” Ms. House said. “But the longer we keep interest rates where they are, the more I get worried about the labor market side.”

Jeanna Smialek , Jim Tankersley and Joe Rennison contributed reporting.

Ben Casselman writes about economics with a particular focus on stories involving data. He has covered the economy for nearly 20 years, and his recent work has focused on how trends in labor, politics, technology and demographics have shaped the way we live and work. More about Ben Casselman

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