How can we solve unemployment problem in the world.
Unemployment of labor refers to the situation where by people are willing and able to work but can not find work or task to do .
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How can we solve unemployment problem in the world |
TYPES OF UNEMPLOYMENT
1:STRUCTURAL UNEMPLOYMENT:Refers to the type of unemployment which occurs due to decline of an industry caused by a decrease in demand for the product produced by the industry or change in technology of producing the product that is,when competitors emerge with a new technology which the industry can not cope with it.This type of unemployment divided into different forms which are,
-Casual unemployment which occurs when workers are laid off in some economic activities which occurs in short periods of time for instance;tourism,construction and catering activities
-Seasonal unemployment which is caused by a regular fluctuations in weather conditions for instance,summer and harvest months.
-Hidden unemployment occurs when labor is under utilized where by,a work can be given to a certain worker who is not enough to make the workers fully employed .
2:FRICTIONAL UNEMPLOYMENT .This occurs as a result from friction in labor market which finally creates a time lag during which a worker is unemployed when moving from one activity to another one.There are forms of frictional unemployment such as;
-Real wage unemployment ,which occurs when there is excessive increase in real wages ;which leads to the demand for labor decrease while supply of labor increase .
-Residual unemployment ,this catches all of the categories which covering any other possible cause of unemployment ,this may include people’s with physical problems.
03:MASS UNEMPLOYMENT .This occurs when there is a general decline in whole economy where by,during the period of economic depression most of the workers loose their jobs .
CAUSES OF UNEMPLOYMENT
1:Technological change :For instance the use of conveyor belts to lift cargo in factories and introduction of computers in several offices has replaced the use of labor force and leads to unemployment.
02:Climatic change:Due to the presence of bad weathering conditions can affect various economic activities especially agricultural and construction works.
03:Shortage of capital goods which retard investment and production hence unemployment .
04:Monetary factors:For example decrease in money supply will retards investment and leads to emergency of an unemployment.
05:Population pressure:For example a greater number of graduates every year may lead to unemployed because most of the labor market can not employ all of them.
06:Lack of supplementary activities in rural areas .
EFFECTS OF UNEMPLOYMENT
Unemployment has both negative and positive effects:
Positive effects of unemployment
01:Increase in the supply of labor ,Large number of unemployed people can increase the supply of labor and reduce the level of wages and cost of production.
02:A remedy for demand pull inflation ,unemployment reduces disposable incomes of income earners and their purchasing power .A decrease in purchasing power may be a remedy for demand pull inflation.
03:Increase in work discipline ,employed workers may become disciplined for fear of losing their jobs due to existence of large numbers of unemployed workers who are searching for the same job.
Negative effects of unemployment
01:Decline in size of national income:It reduced by the proportion that could be produced by the unemployed people’s if they were employed.
02:Dependence ration increase:Large number of unemployed people leads to the increase the number of dependants.
03:Emergence of social evils:Large number of unemployed people leads to some people engaged in social evils like,prostitution and theft inorder to fulfill their needs especially,youths.
04:Emergence of classes :This is between people who have (employed)and people who haven’t (unemployed).
05:Increase in Government burden :In most of countries this burden may be transferred to tax payers where by,in a country unemployed people are paid unemployment benefits by the Government
WAYS TO SOLVE UNEMPLOYMENT PROBLEM
01:Establishment of supplementary activities in rural areas .This will help to solve the problem of seasonal unemployment in the rural areas.
02:Provision of entrepreneurial skills to the students and other people’s in a country which leads,people’s to employ themselves.
03:Establishment of irrigation schemes,especially in areas where rainfall is inadequate.
04:Application of labor intensive techniques of productions.
05:Diversification of the economy,through establishment of many economic sectors such as;agriculture,mining,tourism and fishing inorder to employ many peoples .
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