Economics

UNEMPLOYMENT AND ITS EFFECTUnemployment and its EffectIntroductionUnemployment has always been considered the single most serious individual , companionable and scotch professional personblem since the emergence of industrialization and specialization of work on . The ability to work and earn is considered as one of the primal cornerstone of any functional society . However , when nation who can work argon deprived of it and are laboured to waste their otherwise productive time that could have invested in their own material l successfulness while adding range to the nation . It has also various personal , moral and honourable dimensions associated with it that plays pivotal role in determining the well- being and prosperity of individuals , family , society and ultimately the entire nation . The combined accomplishment of all of these factors is that unemployment has become the most studied phenomena in advanced(a) social and economic studiesThe unemployment situationAt present the unemployment rate in U .S is close to 4 .4 percent of the working population , which implies that a staggering 6 .7 million people stand idle (Employment situation summary , 2007 . The social and economic effect of such large number of people being jobless is disturbing for the overall health of the economic system .

It implies that millions of working hour redundant every day , aggregate loss of hundreds of millions of dollars per day , greater stress on families and individuals rise in poverty , short distribution of wealth , decline in health standards of the fired people and their dependents , rise in criminal activities and drug adapttlement , suicide related instances and increased stress on politics social security programs which further translates in constraints on economy and societyPersistent situation of unemployment causes people to loose their self-esteem , position and precondition in society , pushing them to social margins where they become gloomy , alienated and feel redundant Unemployment also decreases the working potence of unemployed people so that when they try to return to mainstream their talent to work and perform is substantially reduced and their skill set lost or obsoleteTypes of UnemploymentThere are following major types of unemployment seen in the labor securities industry (Krugman , 1994Frictional unemployment- The period of unemployment when people are change by reversal from one job to anotherCyclical unemployment - When the demand of labor in market periodically shrinks and grows due to recession in businessStructural unemployment- This type of unemployment is caused when the pro of job seeker and job are mismatched create stress for the employee and the employerTechnological unemployment - Perhaps the oldest kind of unemployment which happens due to people being replaced by new machines and technologiesClassical unemployment - When market undervalues the laborSeasonal unemployment - Unemployment in those job sectors that are seasonal such as tourism , construction , and sports and lame professions .Issue of high and low unemploymentAlthough persistent and high level of unemployment is weaken , a certain level of low unemployment is considered good for economic growth as it creates incentives for economic growth and contribute to long-term stability and security in job market (Bernstein , Mishel , Schmitt , 2001...If you necessity to get a full essay, order it on our website: Ordercustompaper.com

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