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The fewer the number of people employed, the larger is the number of people who are unemployed. Unemployment indicates the total number of people in the staff who are willing to work but do not have a job. The issue of unemployment is a very serious one indeed, which cannot be tackled easily. Here we are discussing about the different unemployment causes and effects. As, already discussed, our education system is defective as it provides purely academic and bookish knowledge which is not job oriented.

If you meet the eligibility requirements, the are yours. That said, you’re usually required to pay taxes on the unemployment benefits you receive. So, make sure you set aside some money to pay these taxes. Employment leads to wastage of manpower resources and it tends to increase economic overload. A virtuous cycle is thus created by educated parents.

Top 50 Highest Paying Jobs or Careers in the World

For various reasons, certain able people are simply unwilling to migrate from one location to the next. Rather than taking the plunge, they prefer to remain close to home and families as well. In certain places, job opportunities are more than others.

They accordingly look after their children’s need for education at school and good health. Quality of life is adversely affected due to unemployment. When a family has to live on a bare subsistence level there is a general decline in its health status and rising withdrawal from the school system.

This situation helps economy in the long run by maximizing a person’s knowledge, experience, thinking and skills. The most vital of all, unemployment accumulate new entrepreneurs who create chances for themselves to start earning from business strategy and no longer depend on employers. This is a way of new companies and market is formed and enhances innovation in the market. Accumulating new business partners is an advantage that generates more new jobs.

The disadvantages of unemployment are as clear as water to most people in the society even if they did not study economy. Deprived of a job meaning lacking of income, if the society is jobless eventually affects the healthy economy due to insufficient money to spend. But the BLS does track these people in the U-6 unemployment rate.

What are the disadvantages of employment explain?

For people with poor credit or few assets, they allow them to keep spending without having to take out a loan. Borrowers in these straits often pay much higher interest rates than people with good credit and collateral. Entrepreneurs generate employment to many in a country, therefore,government needs to encourage entrepreneurship among the youth. Many people in India do not get job due to lack of requisite skills and due to poor education level, it becomes difficult to train them. According to data from the Centre for Monitoring Indian Economy , India’s unemployment rate touched a four-month high of 7.9% in December 2021. There are two main issues with Work for the Dole as a Labour Market Program .

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While government expenditure can be in the project form where hiring workers to involve in government sectors such as government services, building new facilities and hospitality sectors. The way of lowering taxes encourage more people in the society to spend and increases demands and supply in the economy. When unemployment rates are high and steady, there are negative impacts on the long-run economic growth. Unemployment wastes resources, generates redistributive pressures and distortions, increases poverty, limits labor mobility, and promotes social unrest and conflict. Financial distress is often one of the biggest disadvantages of unemployment, even if you’re out of work for only a short time.

The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force. According to Sander Flaum, an author, adjunct professor and executive-in-residence at Fordham University, unemployment can become the best thing that ever happened to you. It gives you time to assess long-term goals and create an action plan that for some people is life-changing.

Demographic Breakdown of Unemployment and Non Labor Force Workers in the Nation

Businesses are forced to cut costs when the economy slows by reducing payroll expenses. Now that you know the most important elements of unemployment, including the disadvantages, it might be a good idea to exhale. It will be good practice for when – not if, but when – you find another job, throw caution to the wind and let out a whoop of joy. You will know for certain that while unemployment benefits may be temporary, the state of unemployment is, too. Young people, after a long time period of unemployment indulge in illegal and wrong activities for earning money. This also leads to increase in crime in the country.

It indicates a depressed economy and wastage of resources which could have been gainfully employed. There are many educated persons who do not want to work in the villages. They run to cities in search of jobs but most of them fail to find any suitable position for themselves. Along with universalisation of elementary education, bridge courses and back-to-school camps have been initiated to increase the enrolment in elementary education. The main mission of SSA is to provide useful and relevant elementary education for all children in the 6 to 14 age group by 2010. SSA means remove all social, regional and gender disparities in the education system through the active participation of the community.

bureau of labor

An unhealthy person becomes a liability for an organisation or the economy. Lack of small-scale and cottage industries in rural areas. Educated parents have more income as compared to illiterate parents. Millions of skilled workers are working in other countries.

The Negative Impact of Unemployment

Investment in human resource via education and medical care can give high return in future. Education adds to the quality of labour which ultimately enhances the total productivity. In disguised unemployment people appear to be employed.

Land, capital and natural resources etc. form the important resources of a country because these help in further production, but all these are useless if a country does not have human resource. It is a human resource which converts all the other sources into useful form. When the existing human resource is further developed by becoming more educated and healthy, human capital formation takes place.

  • Unemployment among graduates and post-graduates has increased f§ster than among the matriculates.
  • Unemployment is found both in its rural and urban areas.
  • All 6-14 age children were expected to complete eight years of schooling by 2010.
  • 3) Saving capacity and the investment capacity of the working classes decreases.
  • It is often seen that unemployed people end up getting addicted to drugs and alcohol or attempts suicide, leading losses to the human resources of the country.

Ensuring employees’ basic rights and developing an education, training and skill development system aligned with the changing requirements of the labour market. Government needs to keep a strict watch on the education system and should try to implement new ways to generate skilled labour force. The developed countries are dictating on the development of the developing countries and the developed countries are benefiting from the efforts of developing countries. The disadvantage is that of trying to photo copy what exists in developed countries and trying to paste it as a way to go for own development.

Health is an important factor that affects the productivity of an individual. If health is good, it improves the productive power of the individual but if it is bad then the individual will become a liability to the family and the society. A large number of people represented with low income and productivity are counted as employed. They appear to work throughout the year but in terms of their potential and income, it is not adequate for them.

However nowadays more and more disadvantages of unemployment class 9 from even the rural regions are coming forward in order to receive an education. Such unemployed people are those who are trying their best to get a job as soon as possible so that they will be able to maintain a good standard of living. Nowadays nothing comes cheap and that is why everyone wants to have a good job. The number of unemployed people in a location can be calculated simply by subtracting the number of people employed from the total workforce of a place. After several interviews with various companies; I was on the verge of abandoning white-collar jobs in favor of a menial job when I received yet another interview offer. I was discouraged after receiving negative feedback; but I decided to summon courage and call HR to find out why I hadn’t been accepted despite my qualifications and professional appearance.

Who counts as unemployed?

Potters, weavers and many others who were previously engaged in their traditional occupations are facing grim situation. Since India is not a developed country, it is difficult to turn the huge population into a productive asset. It means a large segment of the population is a liability which is a big hindrance in the country’s development. In urban areas, educated unemployment has become a common phenomenon. Many youth with matriculation, graduation and post-graduation are not able to find job.


Previously top companies hired a large number of people so as to ensure that all the jobs get done in a proper manner, within the stipulated deadline. Unless a person fulfils all the requirements, he or she will not even be considered for the position at hand. Since job descriptions have become so very specific and particular, people are finding it very tough to even get an interview. This economic crisis has affected in a very negative manner, the trade between countries. Countries which were previously rather rich have not been able to withstand the economic crisis. Of all the many causes of unemployment which exist, the main causes of unemployment can be pointed to the global economic crisis which exists at the moment and has been existing for a while.

Many find it difficult to work at the below qualification level job. The following mentioned are few best unemployment solutions to follow. When breadwinners in a family are unable to provide for their loved ones, they have no option but to resort to crime as well as foul means in order to feed their family members. However, nowadays, companies prefer to hire as few people as possible on board.