Unemployment has undoubtedly become one of the major issues of this year. With the pandemic hitting us, millions of people have lost their jobs and their only source of income. It is causing people to suffer financially, mentally and makes survival for them very tough. Unemployment has now become a social issue. This is because the rates for it are not only going higher in a single country but globally. In April 2021, global unemployment was at its peak. This has also led to higher crime rates universally which makes it an extremely sensitive social issue. What we need to understand is unemployment is more than just not having a job. It’s also about hunger, starvation, less education, and the unfulfillment of basic necessities. But why is global unemployment at its peak? What might be its result for us and how can we improve it?
WHAT IS UNEMPLOYMENT AND HOW DOES IT OCCUR?
As defined by NSSO, Unemployment is a state in which all those who, due to lack of work is not working. They either seek jobs through an employment exchange mediator, friends, or relatives or by making requests to expected employers. They also express their desire or availability for work under the prevailing condition of work and wages. In simple words, unemployment is said to be a state when a person is willing and able to work under a given wage rate but is unable to get a job. With a growing population, unemployment is rising. The number of jobs increasing is far less than the increase in population.
The cause for the existence of widespread unemployment is not due to a single factor. It is the cumulative result of many causes. Some of them are-
- The slow rate of economic growth is one of them. The actual growth rate always lies below the rate targeted in the five decades of planning. Employment chances created under the plan do not keep pace with the additions to the labor force.
- Population explosion is another cause of high unemployment. This is because it is not possible to generate so many employment opportunities to absorb the large growing labor force.
- Another common reason for unemployment is the slow growth of the industry. Due to a shortage of capital and lack of modern and advanced technology industrial sector does not gain its momentum and does not generate sufficient employment opportunities.
- However, the major reason for the global unemployment crisis of 2021 is the number of people who suddenly lost their jobs due to the Covid-19 pandemic. So many people losing their jobs at the same time had never happened before and when it did the unemployment rose to its peak.
GLOBAL UNEMPLOYMENT PEAK
Unemployment has always been a global and a social issue that needs great support considering it is what peoples livelihood depends on. However, as we discussed due to the Covid-19 pandemic many people lost their job which led to being the peak of Global unemployment. During the lockdown, the job that requires the physical availability of humans were unable to continue all over the world. Moreover, due to people staying at home most of the small companies ran out of business. Whereas some other businesses could not afford to pay many of the employed people and had to fire them.
Talking statistically, the number of people unemployed in 2018 was over 187 million. This might rise to be 5.7% that is 205 million in the year 2022. As in contrast to 2019, 108 million more people working globally are now who are poor or extremely poor. This indicates our regression towards eradicating poverty. If this continues it is predicted that the job growth will not be enough to compensate for the losses until 2023. It was also noticed that women were more likely to be unemployed than men. Given the total unemployment rate, 5% of women workers were unemployed in comparison to 3.9% of men workers.
HOW WILL IT AFFECT US?
Unemployment on the upper level seems to be a variable issue. But if we dig deeper into it we realise that unemployment not only affects the people suffering from it but also disturb the peace and harmony of the society.
The most obvious effect of unemployment on us is the financial hardship that one has to go through. When the person is not working there is no source of wages for him/her and therefore it makes survival difficult. Unemployment not only leads to financial hardship but mental stress. The pressure a person has to go through while finding a new job is surreal. Over time this pressure might develop into other mental health disorders such as stress, anxiety, or even depression.
Also, unemployment if lasted for a very long time can lead to an increase in the debt of a person. In such cases, people end up completely out of money and even homeless. Unemployment not only results in debt and vagrant but leads to hunger, starvation, and sometimes even death in the worst cases. Even during unemployment people still require money to meet their basic necessities for survival. Therefore many people have to choose the path of crime and violence in order to survive which leads to a high rate of crime and violence globally. Poverty, suicide, high crime rate disrupts the entire peace and harmony not only of just one country but globally.
HOW CAN WE IMPROVE OUR CURRENT SITUATION?
The crisis of unemployment at its peak is very hard to cater to consider the sudden increase in it. However, there are few remedies to it.
- Encouraging small scale enterprises through various scheme can help establish more and more businesses. This, in turn, may lead to the work of more and more people and improve the current situation of unemployment.
- Improving the infrastructure can be another way to improve our situation. Improving infrastructural facilities like health, education, irrigation, electricity, and roads. Whole infrastructural sector is important for the development of an economy. Moreover, investing money in building the infrastructure better living of people and generates more and more employment.
- More and more countries initiate employment programs where they provide employment to people and encourage self-employment opportunities. This may lead to employment of people who are actually willing to work and might further employ more people.
- Also, many countries provide financial assistance, training of skills, and supply of inputs to generate more self-employment opportunities.
- Also as the population is one of the biggest reasons for unemployment. Controlling the population worldwide and globally might help in controlling the current situation of the unemployment crisis.
A sudden increase in unemployment can be stated as a global crisis considering how many people are currently suffering from it. If we do not work on our current situation we might fall into a much worse state in near future. However, with technological advancement, outsourcing and the internet, people are seeking bigger opportunities. These technological advancements will let small businesses team up with MNCs. With internet advancement, more and more people are getting opportunities to work from home which is another way to fight this crisis. But this does not signify our future is secured. Until and unless more and more jobs are not generated. If the population keeps increasing at the current rate, employment will never fade.