Unemployment: An Economic Condition

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An economic condition marked by the fact that individuals actively seeking jobs remain unhired. Unemployment is expressed as a percentage of the total available work force. The level of unemployment varies with economic conditions and other circumstances.

Unemployment describes the state of a worker who is able and willing to take work but cannot find it. As indicated by the unemployment rate and other yardsticks, unemployment is an important measure of the economy's strength. A high unemployment rate generally indicates an economy in recession with few job opportunities, while a low unemployment rate points to an economy running at or near full throttle. A low unemployment rate has its downside for stock prices, however: it may be a harbinger of higher interest rates that will slow both an overheated economy and the rise in equity values. In recent years, there's been much controversy over what the true level of U.S. unemployment is. Some economists have relied more on the government's "establishment survey data," which emphasizes the number of new jobs, rather than "household survey data," which is used to compute the headline unemployment rate. Moreover, new technologies and lifestyle changes, which are increasing the number of temporary, contract, and self-employed workers, are making it more difficult to define what unemployment is.

Economy of an individual is at the utmost priority of every democratic as well as welfare state. Since the dawn of human history, individual needs have been prioritized by every human being. These individual needs can be met by proper sources of employment. After the transformation of the world from a feudal to an industrial society, the needs of an individual have risen sharply, giving due importance to finance.In Pakistan, due to gigantic rise in population, individual finances have been disturbed a lot. This is because of rising unemployment. The major cause of unemployment in Pakistan are following.

The first cause of unemployment or joblessness in Pakistan is worsening law and order situation. Owing to this negative social phenomenon, foreign direct investment is sliding down to the bottom. According to the economic survey of Pakistan, in the current decade FDI was minimum last year. Also investors are loosing confidence in the political and economic system of the country therefore they are reluctant to invest in any new business venture. Resultantly, new jobs are not generating while the job seekers are rising continuously in the country. Secondly, Agriculture is account for the maximum job provision in the country. Agriculture sector is facing severe challenges of water shortage, climatic changes and technological backwardness in recent years. These factors have hit the per acre yield negatively which caused loosing of jobs of several people. In 2009-10, agriculture showed a growth of only 2% against the target of 3.8% while nearly 62% of Pakistan population is living in rural areas, and is directly or indirectly linked with agriculture for their livelihood. Thirdly, Industry is also a heaven for educated as well as semi-educated labour force in the country. Pakistan industry is short listing its labour because of gradual decrease in demand as well as acute energy shortage. Energy shortfall crosses 5500 MW at time causing severe damage to production capacity. Fourthly, World economic depression coupled with American war against Terror has also put negative impacts on our economy. It has not only doubled our expenditures on military front but also defaced Pakistan’s image in international arena. These factors have put international investment in Pakistan at risk. Therefore, Pakistan is not attracting new investment causing unemployment in the country. Fifthly, United States of America spent 368 billion in 2007 on research and development whereas Pakistan’s attention towards this sector is the least. By spending on education and research, we can create more...
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