Unemployment is a global issue that affects developed, underdeveloped, and developing countries. The primary evidence is that even developed countries are battling unemployment issues, if the government can create solutions for unemployment it will be a great step for the economy.
The international labor organization made the statistics of both employed and unemployed in 2012 which states that about 6% of the world’s population is unemployed, and youths are the ones who happened to be unemployed.
The government and individuals should take great steps to provide solutions for unemployment and develop the nation’s economy through employment. If you want to know the solutions for unemployment, I will advise you to keep on reading this article.
What Is Unemployment?
Unemployment is defined as the state of having no job in the economy. This is a term referring to individuals actively searching for employment but is unable to find a job. Furthermore, Unemployment is one of the major crises in the world, it can also be described as people above a certain age not been in paid or self-employed but are searching for and available to work.
Solutions for Unemployment
Unemployment can be solved if it is been planned properly by the government, then there can be a great change in the country.
There are ways in which the government and the people can work together to get solutions for unemployment which are:
1. Creating your job position
The financial crisis has made many companies let go of a large number of their employees, and not able to cope with the expenses and debt. As a result, job positions have been reduced. Therefore people, need to start creating their ventures and these can be the biggest opportunity for people to escape unemployment.
2. Expansion of employment
The government should create more job opportunities, by creating more industries, and information regarding employment should be open and known to people.
3. Increase in production
Producing companies should increase production in the agriculture and industrial sectors. Development of small and cottage industries should be encouraged.
4. Population control
The rate of population growth should be addressed or checked in every country, and the government should encourage family planning so that the population of laborers won’t be more than the employment rate.
5. Encouraging self-employment and entrepreneurs
It is known that most people are self-employed and the government should assist and encourage them by providing financial assistance, raw materials, and training.
6. Enhancing the educational sector
The government should look into the education sector and people who will like to further their studies should be admitted to colleges and universities. if the educational level of people is improved it will be easier for them to find a job.
7. Reducing the age of retirement
The government should look into the reduction of the age of retirement which ought to be 65years Because when people retire, it creates job opportunities for the youth.
8. Decentralization of industrial activities
Decentralization of Industrial activity is necessary because it helps to reduce unemployment. If industrial activities are centralized in one place, there will be fewer employment opportunities in underdeveloped areas. Therefore government should encourage this policy.
9. policy regarding seasonal unemployment
policy regarding seasonal unemployment: Seasonal unemployment should be removed from the agricultural sector, and agriculture should have multiple sectors, plantation, animal husbandry, and cottage industries should be encouraged.
10. High rate of capital formation
The high rate of capital formation should be fast and quick, it should be encouraged because it creates greater job opportunities. The capital-output ratio should be kept low.
Types Of Unemployment
There are different types of unemployment, which will be listed below.
1. Structural Unemployment
Structural Unemployment occurs when the employees do not match the demand of the company. these usually happen because there is a release of new technologies and processes. The structural change that happens in a country is a reason for unemployment.
2. Frictional Unemployment
Frictional Unemployment occurs when an employee quits their job on purpose, with the intention of getting a better one. This type of unemployment usually occurs in many countries. Frictional unemployment does not indicate an economy is unhealthy.
3. Real wage and Classical Unemployment:
Real wage and Classical Unemployment occur when the current pay scales are high and an employer is unable to afford and high employee. This type of unemployment takes place when the wages in the competitive job market move above equilibrium.
4. Voluntary Unemployment
Voluntary Unemployment is when an employee chooses to leave their job voluntarily. This type of unemployment does not result from a lack of job availability, it is a result of an individual determination, even when they have other job opportunities.
5. Seasonal Unemployment
Seasonal Unemployment occurs because there was a change in weather or working season. This type of unemployment takes place in a tourist environment where there is a demand for laborers when there is enough tourism. Seasonal employees usually transit to other jobs during their off-season.
6. Cyclical Unemployment
Cyclical Unemployment occurs when an economy goes through periods of inflation and recession. This is when an industry is experiencing instability or less profitability which affects unemployment. Therefore when there is a drop in the output, then the employment of workers will also be less which leads to the development of fewer goods.
7. Chronic Unemployment
Chronic Unemployment is majorly seen in undeveloped countries. When a country is suffering from a weak economic condition, lack of developed resources, high population growth, lack of modern technology, and low capital formation.
Also Read: 20 Highest Paying Jobs for an 18-Year-Old In 2023
Causes Of Unemployment
There are several causes of unemployment which is been stated below;
1. Lack of education
Lack of education is one of the major causes of unemployment. when an individual lacks adequate knowledge or skill which is supposed to help them earn a job they won’t be qualified to get the job because the employer will rather hire an individual who possesses more knowledge or skill.
2. Lack of opportunities
This is a situation whereby a state is economically backward, there is a lack of job opportunities. And this affects the job seekers in that area because they won’t be able to find suitable jobs that are up to their qualifications, which causes them to suffer from unemployment.
3. Increase in population
When an increase in population occurs this affects the economy. because the population of the people does not meet the required number of laborers needed. the government should take a step to train and educate the younger population in other to utilize the increasing labor force productively.
4. Financial crisis
If a financial crisis occurs unemployment tends to increase during this period. A recession can lead to business crashing resulting in a reduction in demand, increased company costs, and loss of jobs. The number of unemployment increased since many businesses across the market failed.
5. Lack of motivation
When there is a lack of motivation this can leave a job seeker unemployed. Because it can hinder one’s progress and reduce the chances of one being hired if they are not highly motivated.
6. Bad leadership
If there are visionless leaders in the government, who are unable to see and plan for the future of their citizens, this creates an unproductive nation that cannot employ its people.
Unemployment can be a serious problem, especially in structurally weak geographic regions where there is overpopulation. Also, bad governance contributes the most to unemployment because it is their duty to ensure job creation and expansion in other to provide solutions for unemployment in the country.
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