social problem of unemployment essay

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Unemployment: Causes, Effects, and Solutions

Categories: Unemployment

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Words: 685 |

Published: Jan 30, 2024

Words: 685 | Pages: 2 | 4 min read

Introduction, causes of unemployment, effects of unemployment, solutions to combat unemployment, a. economic factors.

Global recession: During economic downturns, companies may reduce employment to cut costs and remain competitive.
Automation and technological advancements: The use of machines and technology may replace human workers in some industries, leading to job losses.
Outsourcing of jobs: Companies may choose to outsource jobs to other countries where labor costs are lower, leaving domestic workers unemployed.

B. Societal Factors

Lack of education and skills: Individuals without proper education and job training may be ill-equipped to meet the demands of a constantly evolving job market.
Discrimination in hiring processes: Certain groups, such as women, minorities, and older workers, may face barriers in securing employment due to discrimination.
Dependency on welfare programs: Some individuals may choose to remain on welfare programs due to a lack of incentive to enter the workforce or because they cannot find suitable employment.

A. Economic Effects

Reduction in consumer spending: Without a steady income, unemployed individuals may have less money to spend, resulting in a decline in consumer spending.
Decline in government revenue: With fewer people working, the government may see a decline in tax revenue, which can impact its ability to provide necessary services and promote economic growth.
Increase in social welfare expenses: The government may need to allocate more funds toward social welfare programs, such as unemployment benefits and food assistance, to support those who are unemployed.

B. Social Effects

Increase in crime rates: Individuals who are unemployed may resort to criminal activities to make ends meet, leading to a rise in crime rates.
Mental health issues: Unemployment can cause stress, anxiety, and depression, which can negatively impact an individual's mental health.
Strained relationships and family instability: Unemployment may cause financial strain and tension within families, leading to relationship problems and instability.

A. Economic Solutions

Encouraging entrepreneurship and small business development: Providing resources and support for individuals to start their own businesses can lead to job creation and economic growth.
Promoting vocational training and skill development programs: Ensuring that individuals have access to education and training programs can increase their job readiness and competitiveness in the job market.
Implementing balanced trade policies: Creating policies that promote fair trade and reduce job outsourcing can protect domestic jobs and promote job growth.

B. Social Solutions

Addressing educational disparities and providing access to quality education: Providing quality education to disadvantaged communities can improve their job readiness and reduce unemployment rates.
Combating discrimination in the workplace: Enforcing anti-discrimination laws and promoting diversity and inclusion in the workplace can reduce barriers to employment for certain groups.
Strengthening social safety net programs: Ensuring that social welfare programs are designed to incentivize work and provide support to those in need can promote economic stability and reduce poverty.
Bureau of Labor Statistics. (2021, October 8). Employment Situation Summary. https://www.bls.gov/news.release/empsit.nr0.htm

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Unemployment: Causes and Effects Essay

Unemployment is a significant social and economic problem. Not always positive aspects of enterprise development contribute to a decrease in the percentage of unemployed. The negative impact may be cumulative along with phenomena such as inflation external factors, including the pandemic. Difficulties in obtaining an education for low-income families only widen the gap between the rich and the poor, which in America is already the largest in the world (Telford, 2019). Consequently, the leading causes of unemployment are inflation, advanced technology, and lack of education or skills for employment.

Inflation drives up prices in the economy. Naturally, the price of both products and the materials they have produced increases. Employers seek to recoup the costs of inflation by constantly increasing the financial performance of sales. One of these methods is to increase the gross profit ratio by reducing the cost of production. As a result, the company seeks to optimize costs by reducing wages and saving on various employee benefits. This unfair practice leads to layoffs.

One of the vectors of technology development, which is now the most crucial unemployment, is automation. The replacement of human labor brings the company to eliminate the human error factor, the ability to operate robots around the clock, reducing jobs. From an economic point of view, many of yesterday’s professionals consider their position obsolete and remain without skilled work. A possible way out of this situation is to retrain as a consultant to maintain such machines.

The lack of skills can be caused by several reasons, from income inequality that limits access to education to the narrow specialization of a company that requires training. On-the-job training requires, in turn, the cost of human and time resources, which can affect the company’s operations. As a result, many companies do not train employees but want to get a qualified specialist with a high salary immediately. Applicants lacking these skills are forced to remain unqualified, contributing to rising unemployment and shortages.

Telford, T. (2019). Income inequality in America is the highest it’s been since Census Bureau started tracking it, data shows. Washington Post , 26. Web.

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