| Definition of 'Unemployment'Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy.
| The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. Reasons for Unemployment
People can be unemployed for a variety of reasons. The Bureau of Labor Statistics (BLS) notes five prime reasons for being unemployed: (1) job losers, (2) job leavers, (3) those who have completed temporary jobs, (4) re-entrants, and (5) new entrants. It might seem as though a person is unemployed for one obvious reason--the lack of employment. The Bureau of Labor Statistics (BLS), however, tracks five different reasons for unemployment. Five Reasons
The five key reasons for unemployment are: (1) job losers, (2) job leavers, (3) those of have completed temporary jobs, (4) re-entrants, and (5) new entrants. * Job Losers: A job loser is an unemployed person who has been involuntarily terminated or laid off from a job. More specifically, a job loser is: * A person who has been permanently terminated from a job and is actively seeking employment.
* A person who has been temporarily laid off from a job and is not actively seeking employment due to expectations being called back to work within six months.
* Job Leavers: A job leaver is a person who has voluntarily quit one job and is actively seeking employment elsewhere.
* Completed Temporary Job: An unemployed person can also be one who has recently completed a temporary job and is actively seeking employment elsewhere.
* Re-entrants: A re-entrant is a person who had previously been classified as an employed person, but has been out of the labor force for a period of time before actively seeking employment once again.
* New Entrants: A new entrant is a person who has never before been employed and is actively seeking employment for the first time. Unemployment having adverse economic and social impact
Any polity having unemployment faces adverse economic and social implications. Being a central problem unemployment wastes resources, reduces income thus increasing distress and depression in the polity. Unfortunately Pakistan is one of those developing countries that have offered its people less employment opportunities. It is a general perception that the ratio of unemployment is greater in rural areas. This perception is supported by the fact that rural areas have less to offer as in urban areas industrial sector overcomes this drawback. But as trade and industry require skilled man power and people migrating from rural places to urban cities lack required skills thus this increases unemployment in cities as well. This is when unemployment demonstrates its adverse economic impact. Individuals that come to cities often have sold their small but last assets to reach the cities, have no reasons or options of going back and when not finding a proper source of earning; they later are found engage in criminal acts within the cities. This is when the unemployment employs its adverse economic effect into an adverse social impact on the society. In order to counter this menace government must make efforts to increase economic growth. Exports should be boosted through broadening the taxes while reducing tariffs. The agriculture sector should also be given due importance. More training institutes should be established. Bottom of Form
How does unemployment affect the economy?
Some of the well-known effects of unemployment on the economy are: Unemployment financial costs
The government and the nation suffer. In many countries the government has to pay the unemployed some benefits. The greater the number of the unemployed or the longer they are without work the more money the government has to shell out. Therefore, the nation not only has to deal...
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