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.
