Understanding Unemployment: Causes, Impacts, and Solutions, Exercises of Economics

Download Understanding Unemployment: Causes, Impacts, and Solutions and more Exercises Economics in PDF only on Docsity! ASSIGNMENT: B. COMMUNICATION Members name: 1. Abdullah 2. Fazal karim 3. Muhammad Ali 4. Sajjad badshah 5. Habibullah SUBMITTED TO: DR. SYED IMAD SHAH INSTITUTE OF MANAGEMENT STUDIES Unemployment Each society have working age population in which two kinds of groups are present. In first group people who are not willing or not able to do work or both to do work. This group may have some mental or physical barrier. In second group people show willing and able for doing work these are called labor force. If from the labor force people doing work these are called employed and those who are not doing work these called unemployed. DEFINITION: Those people which are in working age population willing and able to do work but they are unable to find jobs are called unemployment.  In simple words people who are Jobless It is clear from above that not every individual can be call as unemployed which are in working age population and he is not willing and not able to do work because he is not the part of labor force. Only those people can be count as unemployed whose are the part of labor force but he is not able to find job. Finding Unemployment: The most frequent measure of finding Unemployment is the unemployment rate. 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 . Unemployed people are also less likely to spend money on health-related expenditures such as a gym membership or healthy food. By skipping out on these preventative measures, individuals increase their risk of a decline in physical health. Negative familial effects: Family members of an unemployed person are also at risk of the negative impact of unemployment. According to the Society for the Psychological Study of Social Issues, individuals who are unemployed have less family and marital satisfaction and increased family challenges as compared to employed people. The study also found that the stress of unemployment can negatively impact the well- being of spouses. Some studies have also shown that children of unemployed individuals make less on average than those of employed people. Mental health challenges: Studies have shown that unemployment increases a person's risk for depressive symptoms. Another mental health challenge that unemployed individuals often face anxiety. Unemployed people often have decreased mental health compared to those who are employed. Unemployed persons also often experience a higher number of poor mental health days than their employed counterparts. Another research found that unemployment is associated with all the above mental health symptoms as well as psychosomatic symptoms, reduced subjective well-being and lower self-esteem. Exploitation of labor:  Due to unemployment laborers are exploited. They have to accept low wages and work under un-favorable conditions. EFFECTS OF UNEMPLOYMENT ON SOCIETY: The impact of unemployment also reaches out to the community 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. Mental health: Mental health problems like: Low self-confidence, feeling unworthy, depression and hopelessness. With the lost income and the frustration involved in it, the recently unemployed may develop negative attitudes toward common things in life and may feel that all sense of purpose is lost. Frequent emotions could be – low self-esteem, inadequateness and feeling dejected and hopeless.. Health diseases: The unemployment overall tension can increase dramatically general health issues of individuals. Tension at home: Quarrels and arguments at home front which may lead to tension and increased numbers of divorces etc. Political issues: Loss of trust in administration and the government which may lead to political instability. Tension over taxes rise: Unemployment also brings up discontent and frustration amongst the tax paying citizens. In order to meet the demands of the unemployment fund the government many a times may have to increase the taxes thus giving way to restlessness amongst the tax paying citizens. Insecurity amongst employees: The prevailing unemployment and the plight of the unemployed people and their families may create fear and insecurity even in the currently employed people. Crime and violence: Increase in the rate of crime. Suicide cases: Increase in the rate of suicide attempts and actual suicides as well. Social outing: Unemployment may bring a decrease in social outings and interactions with other people, including friends. Stigma: Unemployment brings with more than just ‘no work’. It also brings with it the disgrace that the person has to bear. Nobody likes to be termed as unemployed. Standard of leaving: In times of unemployment the competition for jobs and the negotiation power of the individual decreases and thus also the living standard of people with the salaries packages and income reduced. Employment gaps: To further complicate the situation the longer the individual is out of job the more difficult it becomes to find one. Employers find employment gasps as a negative aspect. No one wants to hire a person who has been out of work for some time even when there’s no fault of the individual per say. 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. 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 but in our country government don’t focus on it. Government have to provide training collages of different skills. 9. Rapidly increase in dollar rate: The rate of dollar increase every day and this trend will continues. The cost of everything will directly expensive. Because the rise and the rate of dollar our currency is becoming increasingly corrosive. When we will sell anything for $1.00 in foreign market it cost us 200 end domestic market now. The value is decreasing the exports causing significant damage and the companies are not many factoring for export market. When the production is less so less employee will be needed. And as a result companies not issues new jobs that’s why it is the main cause of unemployment. 10. Retirement policies: Pen seniors In Pakistan is retire at the age of 60 which is in unusually advanced age for this country and the Pakistan government bears direct responsibility for the situation. Pakistan have bad retirement policies which also lead to unemployment it’s also a major cause of unemployment the government may make changes like decreasing the age for retirement. How to reduce unemployment: The first step in reducing unemployment in Pakistan is for the Pakistani government to develop a comprehensive plan. It is necessary to establish a certified training institution or specialized institution that can carry out the qualification program. Retirement age must be 55 years or older. To understand the problems of unemployment and underemployment, the public and government need to take the following steps: 1) Establishment of employment office there is no single place for employment information Opportunity in Pakistan. More and more employment offices will need to be set up, which will help reduce unemployment. 2) Population management we need to curb the rate of population growth. Population control will increase employment opportunities and reduce the unemployment rate. 3) Capital accumulation to raise the level of capital accumulation, it is necessary to increase total savings and investment. This will improve the income and employment levels of the economy. 4) Growth of the industrial sector Governments need to provide the basic infrastructure for established industries in rural areas. To reduce unemployment, the industrial sector needs to grow. 5) Growth of the agricultural sector Agriculture is the most important sector of our economy. It provides more work for the population. To create more jobs for the unemployed, we need to establish it on a commercial basis. 6) Technology education and training creating an efficient workforce requires technical education and training. The total number of technical and vocational training institutions in Pakistan in 21 exceeded 152211. 7) Self-employed regulations People and governments need to maintain independence. In this case, the state should give them a line of credit. 8) Small scale and domestic industry growth Governments should encourage the establishment of small industries, especially in rural areas. Governments need to provide subsidies and. 9. Government should control corruption in order to reduce unemployment because of corruption the eligible candidates become unemployed as discuss above . Islam and Unemployment: As Islam encourage an individual for prayer and scare individual who are not performing it. Same Islam encourage an individual for doing some work and find food , cloth and shelter for himself and for their family and discourage an individual who are not working and begging from others. Allah says in Quran : When you hear calling for Friday prayer leave your businesses . When you perform it then spread in the earth of Allah and find Allah grace . It means that individual should work hard and struggle . Hazoor (SAW) said : Tasty and best food are that which you earn by yourself and eat. Prophet of Allah Hazrat Dawood (AS) earn by himself and eat . Hazoor (SAW) said: All prophets of Allah grazed animals and I had to . It means that all prophets of Allah were doing work for their needs and not begging from others . Prophet’s way of Reducing Unemployment : In order to reduce the unemployment and to courage people for work and become self support prophet’s said encouraging and motivational Hadith like . Hazoor (SAW) siad: “Al kasib o Habib Ullah '’ means that Worker is the friend of Allah . In order to reduce unemployment and encourage people for work He made those people who are working the friend of Allah . Inorder for the friend of Allah we should learn all skills and things which are helpful for us in becoming employed and help the family by finding Halal rizq . Practical Example : Once a man came to prophet and was finding something . Prophet said to him have you something in your house . Man said to him I have a blanket and glass. Prophet said brought those and sell it for 2 dinnar and gave 1 dinnar for food for his family and for second dinnar prophet said to him bought axe and go to forest and bring wood sell . After 10 days he came back and he was very happy and having 10 dinnar. Interview. In order to find causes of unemployment and how to reduce it who interview with different people. Interviewer 1: 1. TAHIR KHAN QUALIFICATION: Graduation in sociology From university of Peshawar Q.NO:1.We ask from him what is the cause of unemployment? Ans.He says corruption is the main cause of unemployment director demanding high amount off money which is impossible for me that’s why I become unemployed. Q.NO.2:How two reduce? Ans:Goverment should control the corruption in different departments in order to give job to desirable person. Interview 2: Name: Rahat khan Qualification: BA in Arts from UOP Q.no.1:What is the main cause of unemployment?