View
452
Download
1
Category
Tags:
Preview:
Citation preview
Effects of Unemployment on Economy
Unemployment Classification of Unemployment Causes Effects of Unemployment Measures of Unemployment Unemployment and Economic Growth Solutions
Contents
Unemployment refers to thesituation in which the workers do not get employment.
Unemployment
Classification of Unemployment
Unemployment
Involuntary
Voluntary
Disguised
Demand Deficiency
Seasonal
Structural
Frictional
Unemployment that results when resources decide to leave one job often in search of another.
Voluntary Unemployment
The contrast to voluntary unemployment is involuntary unemployment in which resources are forced out of work , also known as Forced Unemployment.
Involuntary Unemployment
It results because it takes time for workers to search for the jobs that best suit their tastes and skills.
Frictional Unemployment
Structural Unemployment arises because the number of jobs available are insufficient.
Structural Unemployment
Seasonal unemployment occur when an occupation is not in demand at certain season.
Seasonal Unemployment
It arises when people are out of work because of lack of aggregate demand.
Unemployment due to Demand Deficiency
When people do not have productive full-time employment, but are not counted in the official unemployment statistics.
Disguised Unemployment
High Population Growth Absences of employment opportunities Increasing turnout of students from universities Slow developing industries Inflation Recession Changes in technology Willingness to work Disability Discriminating factors
Causes of unemployment
ECONOMIC EFFECT1. Wastage of human resources2. Low income3. Low saving4. Low capital formation5. Low living standard6. Low lobour productivity
Effects of Unemployment
Social Effect1. Wide gap between rich and poor\class conflicts2. Social unrest3. More illegal activities
Effects of Unemployment
At Individual Level1. Mental stress2. Loss of self esteem3. Directly linked to poverty
Effects of Unemployment
Employed Any person 16 years old or older 1. who works for pay, either for someone else or in his
or her own business for 1 or more hours per week,2. who works without pay for 15 or more hours per
week in a family enterprise, or 3. who has a job but has been temporarily absent
with or without pay. Unemployed A person 16 years old or older who is
not working, is available for work, and has made specific efforts to find work during the previous 4 weeks.
Measuring Unemployment
Encouragement to small enterprises Subsidies on the basis of employment Encouragement of new growth centers in small towns
and rural areas
Solutions
Increased government expenditure Lower taxation Lower interest rates Employment subsidies
Unemployment can be Reduced by
CONCLUSION
THANK YOU
Recommended