Unemployment: Results and Causes.

Unemployment is a primary issue in today’s world, which we see to go beyond the basic concept of people without work; it is a result of in depth economic, social, and structural issues within a country. When we have individuals that are willing and able to work but still can’t find a job, the results go well beyond that person’s personal struggle. Families break down, communities fall apart, and national growth comes to a standstill. We must look at what causes unemployment and what are its results in order to see how it in turn shapes the lives of the individual and the structure of society.

In economic instability, we see one of the main causes of unemployment. As the economy slows down, businesses will cut production, reduce costs, and in many cases lay off workers. In a recession, we see demand for goods and services fall, which in turn causes companies to reduce their workforce. This kind of unemployment, what we term as cyclical unemployment, is very much a part of economic fluctuation. For many workers, it is not that they lack skill or put in low effort which leads to them losing their jobs at such times, but that the cause is out of their control.

Another large cause of unemployment is skill sets that workers have do not match what is required for the job. As industries grow and change, so do the skills which are in demand. For example, we see in tech, where it is always growing, which means that workers require to constantly update their technical and specialized knowledge. Those that do not acquire the new skills may have hard time finding work, even if it is available. This type of unemployment brings to light the issue of the role of education and continuous professional development, as the job market is in a constant state of change.

Technology itself is a large player in job loss. We see that although innovation brings with it increased efficiency and productivity, at the same time it does away with the need for human labor in some fields. What we are seeing is an increase of machines, software, and automated systems in the place of what were once done by hand or computer. In manufacturing, data entry, and customer service, we note that more and more is being done by machines and virtual agents. Also, while tech creation opens up new fields, it also leaves in the dust many workers which are unable to transition into the new types of jobs.

Population growth is a factor in high unemployment. In which populations are growing at rapid rates, we see that the number of job hunters outstrip the number of open positions. That which was once a seller’s market has become a buyer’s, with large numbers of people competing for a small number of jobs. Also, it is the young which are hit the hardest, at which recent graduates are having the most trouble as they try to gain foot in a very competitive environment.

Poor quality education and a lack of good training also play a role in high unemployment. What we see is that schools and universities which do not prepare students with relevant skills see their graduates having a hard time in the job market. This gap between what is taught in the classroom and what employers want see many individuals come out unprepared for work. Also, we have that while some may have academic degrees, they at the same time may lack in practical experience or the specific skills which are required for the present job market.

Government policy and political instability also play a role in high unemployment. Poor economic policy, corruption, and inactivity in key areas is what which deters job growth. In regions that see political unrest or conflict, businesses may shut down or move out, which in turn causes large scale job loss. Stability and good governance is what we see as the base for growth of business, and in that we see growth of job opportunities.

Unemployment issues are wide spread and very serious. At an individual level, we see that unemployment causes financial issues. Without a stable income, people have trouble with basic needs like food, housing, and education. Also, this may put in motion a cycle of poverty which is hard to break. Also, it is the case that loss of income results in debt and a lower standard of living, which in turn affects not only the individual but also the family.

Beyond the issues of money, unemployment also has great psychological impact. We see that which people put forth in the world through their work is what they lose when they are out of a job, and that in turn causes them to question their value as a person. Many put forth a great deal of themselves into their work which they in turn use as a measure of self worth. Thus, when they lose their jobs, they feel like failures; they become frustrated and helpless. Over time, this plays out in terms of health. We see the development of stress, anxiety, and depression. Also, the longer a person is out of work, the more they struggle to feel value in what they do and to bring forward motivation.

Unemployment also has wide ranging effects on families and relationships. Financial stress causes in home issues, which in turn produce more problems and also sets off a chain of reactions. Also, when parents are out of work, they are less able to for their kids’ needs, which in turn has a family wide impact. In some cases, what we see is that children leave school early, or they miss out on experiences, which in turn puts them at a greater disadvantage.

At the social level, high unemployment rates cause an increase in crime and social instability. When people do not have access to basic resources, the some may turn to break the law as a way out. This may create security issues within communities and put extra strain on law enforcement agencies. Also, we see that in large groups of the jobless which are left out or marginalized, we get to see the break out of protests, which in turn causes instability.

Unemployment also plays a large role in the health of the economy. As people lose their jobs, they have less to spend, which in turn reduces the total demand for products and services. This goes on to affect companies, which in turn see lower profits and may let go of more employees. We see a cycle develop, which is that of unemployment fueling economic decline, which in turn makes for a harder path to recovery. Also, governments may put under great strain to support the unemployed, in which they may run out of resources.

Another key issue of unemployment is what we lose in terms of human capital. Each person has talents, skills, and abilities which they bring to the table for what they can give to the world. When people are out of work, that which they have to offer does not get put to use. Also, this doesn’t only play out in terms of economic output but also in terms of innovation and growth. A which doesn’t see to fully use its human resources is one that is not reaching out full range of what it is capable of.

Long term unemployment is also a great issue. We see that which individuals are unemployed for great lengths of time may in fact see a decline in their skills and work habits. Also, it is the tendency of employers to pass on such job seekers, which in turn makes it even more difficult for them to reenter the workforce. Thus, we have a situation which is self reinforcing and which in turn traps people in a cycle which is very hard to break.

While we see great issues with unemployment, we also identify areas which require improvement. To address unemployment, we put forth a many sided approach which looks at economic growth, education, skill development, and effective governance. In terms of creating employment, we do not only focus on job creation but also that people are prepared to take on those roles.

Unemployment is a very complex issue which has many causes and issues. We see in economic downturns, technology changes, also in education which is lacking, and in large population groups, many factors which play into the issue. It’s an issue which plays out at the level of the individual, the family, and the society, which in turn affects finance, health, and growth. By understanding what is causing it and what are the results, we take a step forward in the fight to solve the issue, and in that which we create a more stable and inclusive society.