Ways to reduce unemployment in global society

World is under grip of unemployment at alarming rate. Unemployment is considered as a critical issue for countries in recession period and it has backlash in younger generation.   Unemployment is prevalent and emerging due to many reasons in present scenario. It is witnessed that massive amount of people have lost their occupation due to decrement in job opportunities and credit crunch on industries. Many economists and business researchers predict unemployment as a multifarious problem which will upsurge at speedy rate to affect millions of people in future if immediate efforts are not made to control the situation.

The major concern of government is to prevent the growing trend of unemployment. Though government as well as Multinational Corporation are seriously looking to tackle problem of unemployment at global scale, still it is exploding at alarming rate.  Many economists asserted that it is really difficult to avert unemployment but Government can support and implement new policies to create abundant of jobs for jobless youths. To tackle grim situation ascends from joblessness, several nations have devised effective strategies and measures to recruit and train the jobless talented candidates. Government leaders have learnt the lesson from earlier economic downturns when prompt decisions were not made to combat unemployment and it has grave repercussion in global society. According to financial academicians, developed countries used various measures to resolve high employment crisis. Government is concentrating on the major factors how employment can be attained and how to balance between demand and supply in the labour market. The main target of the administration of many countries is to attain full employment to people who are adept and eager to work through effectual policies.

In current global scenario, national and international community is under grip of unemployment. Economic policy makers graded this issue on top priority and trying to implement efficacious strategies to lessen unemployment in developed as well developing nations. Embryonic theoretical literature demonstrated that unemployment is a result of the skirmish between capital and labour over distribution of the results of production. The effect is reliant on on the power of employees versus employers. When unemployment explode in any society or country, it exert great pressure on the budget of individuals, trade, the Government and the national financial system.

Many experts articulated that unemployment will recede when countries recover from the global economic slump which affected millions of people to become unwaged. When joblessness persist for longer period, it may worsen the living standards of countries and threatens a downfall in social consistency. It is advised that government must take initiative to execute strategies to reduce unemployment as they have vital role in supporting to industries that are in extreme financial crunch. It is the responsibility of government to offer good training and education to the unwaged people to improve skills and communication. Another important role of government is to generate awareness among jobless people for finding jobs through providing enough information in job centres and initiate programs to overcome a recession in a country.

The Government must devise policies to create demand in the economy. It can be done by funding to businesses to produce goods, provide profitable projects, and cut interest rates to encourage spending. These major steps may resolve the current unemployment up to some extent in a country.

Among different types of unemployment, the Real Wage Unemployment is grim in market. Real wage unemployment occurs when real wages boost above the equilibrium level for an industry. To reduce Real wage unemployment, real product wage would be cut considerably.  Economists mainly focus on faster economic growth and cut in real wage to resolve unemployment in country. If economic growth is faster, there are more options for creating jobs for unwaged youths.

It is advised by business academics that Keynesian policies also can be adopted to reduce unemployment which are based on demand management. These policies need to increase the level of cumulative demand for goods and services in the economy. Policies are made to increase the government spending specially in the area of investment and infrastructure. The Government can boost the level of its own spending. This directly increases total demand which can bring equilibrium in national income. Continual economic growth may generate bountiful jobs in the economy. Another effective Keynesian policy for lessening unemployment is reduction in taxation, increasing disposable income and spending in direct or indirect means. Lowing direct taxation raises consumer’s disposable income and should improve domestic spending.

Monetary policy also involves changes in the value of the exchange rate since fluctuations in the currency also impact on macroeconomic activity. These policies aimed at improving the competitiveness and profitability of industries which generate huge level jobs for people. It can be attained through lower interest rates to encourage the demand for credit, cut saving and increase consumer’s real disposable incomes which will improve expenditure and demand.

Another procedure to lessen joblessness is the depreciation of the exchange rate.

Today, globalization changes the patterns of employment between countries. Structural unemployment persists where there is an inequality between employee abilities and the necessities of the new job opportunities. Numerous approaches can be adopted to lessen structural unemployment. These are dynamic labour market policies. The first involves direct government action to provide suitable jobs to the unemployed. Labour market reform policy is made by using labour market program to improve the flexibility and to trim down structural unemployment. It can boost the labour productivity, control cost increase and improve flexibility in the supply of the labour market. The main aim of this policy is to increase labour market productivity for long term sustainable economic and employment growth. Labour market program improves the ability of the jobseeker to compete successfully in the labour market. Training programs are most effective which can provide reemployment to unemployed.

Jobseekers may get jobs by improving geographical mobility of labour. Geographical mobility is major factor to find suitable employment. It is the responsibility of the government to sanction grants or low cost housing to promote workers to move to other regions for better jobs. Mainly unemployment in a country stemmed from normal working of an economy Frictional and seasonal factors. Frictional unemployment ascends due to improper information in the labour market. To decrease frictional unemployment, the government must appraise implementation policies that improve job information. Many economists visualized that if better information on job vacancies in the labour market is available, it can save job search time and enhance financial condition of job seeker. To reduce unemployment, the government could cut direct taxes for the low paid to increase the post tax wage and, therefore, encourage them to find work easily.

Self-employment is another viable alternative to generate income and reduce unemployment rate. Several Studies reveal a positive impact of economic recession, which pushes unemployed workers to become self-employed. This has great impact of economic development, where growth opportunities stimulate an increase in entrepreneurial activity. In Indian scenario, lots of companies offer contract job such as construction companies, Advertisement Company or content writing companies.  Candidates can rigorously search for job in online portal to get suitable job.

To wrap up emerging facts about unemployment trends, it is well realized that global community is severely afflicted by issue of unemployment. Unemployment is recognized as grim social problem which affect millions of people. It outbreak because government in most of the nations has snubbed the issues and implemented feeble policies. These reckless approach of responsible officers and private enterprises wrecked the younger generation and make their future dark.  This caused fragile economy and cuts in jobs and income support. Though full employment cannot be achieved but unemployment is taking a form of epidemic in present global society.  Many economists and intellectuals deeply studying this grave issue and trying to offer solution. It is stated by experts that when any nation tries to lessen unemployment, the initial step is to identify the causes of unemployment. Major factors essential to combat unemployment and improving economy are Political commitment to the policy of full employment and agreement among the social groups to emphasize on job growth priority over wage growth, coordinate fiscal, wage and monetary policy,   tax financed expansion of public service employment or other service strategies, establishing socially and individually practical activities outside formal employment. Government initiative is highly important to curb the catastrophe arises due to unemployment at global scale. It is presumed by economic researchers that unemployment will certainly increase in future. It will have damaging effects on the labour market and remain for long duration. Time has come to exterminate the problem from its source.