Unemployment and Its Effect on the Economy and Society
Unemployment is an ongoing problem throughout the world. One may asked, what is unemployment? It is the number of persons who are willing and able to work but are unable to find jobs. Unemployment is harmful to a country because it imposes costs on a Society. The cost of employment to a nation can be categorised under three heading, namely
· The Social Cost
· The Cost to the Exchequer
· The Economic Cost
The Social Cost of Unemployment
The social cost of involuntary unemployment is incalculable. For an individual, the demoralising effect that it can have clearly depends upon whether the period of unemployment is short term or long term. Short term unemployment may have no serious effect on an individual whilst long term unemployment can be devastating. According to the Labour Force Survey in 1998, over 26% of the people unemployed for more than a year were over 50 years of age. Many of these people believe that they are failing to find jobs because they are too old and a large number of older people have become reconciled to the prospect of never working again. A major problem, of course, is that as job searchers become more and more pessimistic about their chances of finding jobs become even more remote. According to survey carried out by the Manpower Services Commission, many of the longer-term unemployed become bored, idle, lose their friends and suffer from depression. One respondent to the survey stated, “It is not just money. Work gives you something to do. I’m just wasting away.” There is also evidence of increase family tensions leading in some cases to violence, divorce and family break ups. Unemployment can also lead to homelessness, as in some circumstances building societies may foreclose on mortgage if repayments are not kept up. One can only speculate on the effect of long term unemployment on vandalism, football hooliganism and the crime rate in general.
In countries without adequate welfare provisions for the poor, unemployment may be very much
· The Social Cost
· The Cost to the Exchequer
· The Economic Cost
The Social Cost of Unemployment
The social cost of involuntary unemployment is incalculable. For an individual, the demoralising effect that it can have clearly depends upon whether the period of unemployment is short term or long term. Short term unemployment may have no serious effect on an individual whilst long term unemployment can be devastating. According to the Labour Force Survey in 1998, over 26% of the people unemployed for more than a year were over 50 years of age. Many of these people believe that they are failing to find jobs because they are too old and a large number of older people have become reconciled to the prospect of never working again. A major problem, of course, is that as job searchers become more and more pessimistic about their chances of finding jobs become even more remote. According to survey carried out by the Manpower Services Commission, many of the longer-term unemployed become bored, idle, lose their friends and suffer from depression. One respondent to the survey stated, “It is not just money. Work gives you something to do. I’m just wasting away.” There is also evidence of increase family tensions leading in some cases to violence, divorce and family break ups. Unemployment can also lead to homelessness, as in some circumstances building societies may foreclose on mortgage if repayments are not kept up. One can only speculate on the effect of long term unemployment on vandalism, football hooliganism and the crime rate in general.
In countries without adequate welfare provisions for the poor, unemployment may be very much