Understanding Unemployment: Causes, Impacts, and Solutions, Schemes and Mind Maps of Finance

Download Understanding Unemployment: Causes, Impacts, and Solutions and more Schemes and Mind Maps Finance in PDF only on Docsity! UNEMPLOYMENT ASSIGNMENT:BU SSINESS COMMUNICATIO N SUBMITTED TO:DR IMAD SHAH Members name: 1. Abdullah 2. Fazal karim 3. Muhammad Ali 4. Sajjad badshah 5. Habibullah INSTITUTE OF MANAGEMENT STUDIES Unemployment rate =unemployed persons/labor force The labor force included both employed and unemployed people Unemployment rate in PAKISTAN: Pakistan bureau of statistics (PBS) released the labor force survey (LFS) which shows that unemployment rate in Pakistan is 6.3%.In kp it is 8.8%,Punjab has 6.8%,Sindh has 3.9% and Baluchistan has 4.3%. kp have highest %age 8.8% from other provinces. Kinds of Unemployment: There are main three kinds of unemployment . 1) Frictional unemployment: When a person is temporary out of job. It is the result of employment transition. It is occur when employee quitting their job for better salary or for better company. It is occur when employee is shifting from one city to another. It occur when employee faces some health issues which unable the employ to do their ordinary work. It is also occur because of new graduates entering into the field of job. This type of unemployment is occur in a stable and growing economy. It is always present in each and every economy . 2) Cyclic unemployment: It is the result of ups and downs occur in the economy. It is increases when recession occur and decreases when ups occur in economy. When business have no demand for product and services reduction occur in supply so less number of employees and workers are needed because of low production. 3) Structural Unemployment: It is occur when there is a mismatch between workers skill and skills required by a job. It is caused when shifts occur in economy and it causes long lasting unemployment and last for decades. Impacts of Unemployment : As unemployment is a social issue therefore it effects individual who face it,family and also the society and country they live in. Impact of unemployment is categorized as: 1.Impacts of Unemployment on individual; unemployment individuals are susceptible to experiencing several challenges. These challenges are worsen the longer a person is unemployed. Common disadvantages of unemployment for individuals are as following: LOSS OF INCOME: Unemployed individuals experience loss of income as a direct result of not having a job. Because a job provides wages for the person, being unemployed takes away these wages and leaves the individual with less available income. People who are unemployed and do not have any other source of income often rely on their savings or borrowed money to fund essential costs such as food and living expenses. Unemployed individuals who are the primary worker in the family face even more difficulty, as they must come up with the money to account for not only their own needs but for the needs of their family members. unemployed often find themselves suffering from low self esteem. . Loss of self-respect: Nearly four- in-ten (38%) long-term unemployed report they have lost some self-respect while out of work, compared with 29% who were jobless for shorter periods of time. The long-term unemployed also are significantly more likely to say they sought professional help for depression or other emotional issues while out of work. In our society we often see that if you have no specific job, mostly parents are not ready to tie hand of their daughter. FOR EXAMPLE we daily see in our society when a person is unemployed they have less respect than one who is employed. Impact on career goals: More than four-in-ten (43%) of the long-term unemployed say the unemployment will have a “big impact” on their ability to achieve their long- term career goals. Among those unemployed less than three months, 28% said being jobless would have a similarly serious impact. Suicidal thoughts: Unemployed person have often suicidal thoughts because of no money to fulfill their their needs and that of familly members. So the person fade of life and want no more to live in the world. Lose of skills’ usage: The unemployed is not able to put his/her skills to use. And in a situation where it goes on for too long the person may have to lose some of his/her skills. 2. IMPACTS OF UNEMPLOYMENT ON FAMILY AND SOCIETY: The impact of unemployment also reaches out to the family and society in which the unemployed person lives. While one unemployed person will typically not have a significant impact on society, high unemployment rates in certain areas often lead to higher poverty rates and poorer neighborhoods that amplify the societal impact of unemployment. All these affect not just on the person but the entire systems and the society in general. Here are some aspects of the impact of unemployment: Economic Issues : During unemployment, there is no income, which leads to poverty. The burden of debt will increase, leading to economic problems. When unemployment happens, the state and the federal government have to step in and pay unemployment benefits. By needing to pay more of these benefits, the government must borrow money to pay the benefits or reduce spending in other areas.  Social Issues : As we know unemployment is itself a social issue so it leads to other social problems such as poverty, robbery,terrorism, snatching etc. Most crimes are committed by individuals who are unemployed and living in poverty. When the unemployment rates increase quarrels in family and society Causes of unemployment: Following causes are given below. 1. Fault in our education system: The no.1 cause of unemployment is fault in our education system .The system of education in our country is not too good. The education system in Pakistan has not progressed in line with the passage of time. In US or some other successful country teacher give training to his students of different skills. There are a number of technical collages that provide student with training butin our country government don’t focus on it.Government have to provide training collages of different skills. 2. Rapidly growing population rate: The second main cause of unemployment is rapidly increase in population rate .The uncontrolled rise of the population in Pakistan is one of the most seriousconcern facing the country unemployed. According to official statistic the population of Pakistan is growing at a pace of 2.2% per year. Thegovernment of any other organization will not able to create jobs or work location for a large number of illiterate person in the population .The majority of people who live in village are uneducated and as a result they are unable to deal with difficulties that raise in our society. 3. PAKISTAN’S CURRENT ECONOMIC SATUAITION. The economic situation of Pakistan is not too good in these modern time. The price of everything raise every day. As a result there is a shortage of demand .people don’t want to buy products. Many businesses are suffering from a severe downturn with the average 5 hundred thousand worker losing their job in the last ten month .Many businesses are reducing their word forces and cutting their wages in order to cut cost and maximize profit .As a result majority of Pakistan is affair to start a new business and as a result there are no new employment. 4.Energy crisis in the country. Pakistan energy crisis is the primary source of concern for all factories and industries in the country. We are tortured by the load shedding for 20 years. Until it was family resolved in 2017. We all are now generally the majority of energy through the use of furnace oil which let face. It is the most expensive option because the price of electricity is too high. The product that we manufacture in industries are excessively expensive when compared to the product of other country. 5. High taxation rate: High taxation rate Are also the main cause of unemployment. Or country have large number of taxation. Raw material taxation, Import taxation, property taxation, income taxation and revenue taxation Are all contributing other deadline of our industries which is the result of which the sector are not growing. Industries of all types will not create additional job because it will be difficult to handle that. 6. Rapidly increase in dollar rate: How to reduce unemployment The first step for the government to reduce unemployment in Pakistan is to develop a comprehensive plans. It is necessary to establish a certified training or special institution which can carry out the qualification problems to understand problem of under employment or unemployment. The public and government of Pakistan need to take the following steps 1) Improve education system: Government should improve education system in order to avoid or minimize unemployment. Along with education in our education institutions, training should also be given so that students can go ahead and learn something in their practical lives. Higher level of education increase the chances that an unemployed person will emerge with comprehensive wage and reduce the time required to find the job. 2) Control population: Population is the big cause of unemployment in Pakistan. According to official statistic the population of Pakistan is growing at pace of 2.2 % per year. The current population of Pakistan is 229078341 as of wed, June 1, 2022. Pakistan is the 5th largest country in the world. Pakistan population is equivalent to 2.83 % of the total world population. The Pakistani government should control population because where the population of the country grows, the employment opportunities will decrease. 3) Improve economics situation: The current economics situation in Pakistan is very bad. Inflation is rising day by day due to which people don’t buy the products. Due to bad economic condition, worker are being fired from their companies in order to decrease costs due to which unemployment increases. In order to avoid all these situations, the government should have to improve the economics situation. 4) Introduce skill achieving programs: Lack of skills is the main cause of unemployment. Employees needs to improve their skills to end unemployment. Government should introduce skills teaching programmes in order to reduce unemployment such as Kamyab Jawan, Digi skills etc. 5) Remove favouritism and nepotism: Favouritism and nepotism is natural thing with human being. To end unemployment we must need to end favouritism and nepotism. Unfortunately in our society, there is a lot of favouritism and nepotism due to which eligible is not given a chance and is replace by an incompetent person due to which unemployment rate in increases. The employed staff always prefer their relatives and friends who are even unable and incompetent for the post. So favouritism must be ended to avoid unemployment in our society. When eligible candidate select in their field he can do better decision which help in reduction of unemployment. 6) Stop Corruption: Corruption is also the main cause of unemployment. When eligible candidate apply for the post in an institution, unfortunately they ask to pay a large sum of money which is out of his reach which leaves him unemployed. In order to improve our society we have to eradicate the scourge of corruption by hiring deserving people .