Read this article to learn about bad effects of unemployment on Economic Growth!
Unemployment is a big problem which effects the economic growth of the country. It has following bad effects:
(i)Exploitation of labour:
Due to unemployment labourers are exploited. They have to accept low wages and work under un-favourable conditions.
Industrial disputes arise because of unemployment. It has adverse effects on employer-employee relations. Due to industrial disputes, the unemployment rises.
There is political instability in the country due to unemployment. Unemployed persons engage themselves in destructive activities. They consider Govts, worthless. Economic development becomes difficult under conditions of political instability.
Many social evils like dishonesty, gambling and immorality etc. arise due to unemployment. It endangers law and order situation of the country. It causes social disruption in the society.
(v)Increase in poverty:
Under the situation of unemployment a man has no source of income. Unemployment causes poverty. Burden of debt increases. Economic problems increase.
(vi)Loss of human resources:
Due to unemployment, human resources go waste. No constructive use of labour force is made. If human resources are properly used, economic growth of the country will increase.
( 875 Words )
- UNEMPLOYMENT IN THE TRADITIONAL SOCIETIES
- CAUSES OF UNEMPLOYMENT
- DEFICIENT EDUCATION
- UNEMPLOYMENT, ITS ILL EFFECTS
- WAYS TO NEUTRALIZE UNEMPLOYMENT
Unemployment or joblessness as defined by ILO “ International Labour Organization”, occurs when people are without jobs and they have actively sought work within the past four weeks. Unemployment has become a leading world problem after the economic slowdown affected almost the entire world. Pakistan is a now going through its 64th year of independence but still the public is listening to the lame promises of the politicians, as the people of Pakistan are still suffering from a major population of poor, ignorant and unemployed residents. The problem of unemployment is becoming day by day more acute. In Asian countries unemployment is at its highest peak.
In the traditional societies, salaried jobs did not exist as money was not in use. These cultures lived off the land directly and the land belonged to the tribe or no one. Everyone knew how to build shelter and make food. When these cultures invented currency and moved to the cities, they began to depend on money to buy food from a middle man, instead of growing, gathering or hunting the food directly from nature. Dependence on jobs to make money to buy food and shelter was the beginning of unemployment. Since then unemployment has taken the center position in almost every country.
In Pakistan due to gigantic rise in population, individual finances have been disturbed a lot. This is because of rising unemployment. The major causes of unemployment in Pakistan are:
Firstly, joblessness in Pakistan is worsening. Law and order situation, owing to this negative social phenomenon, foreign direct investment is sliding down to bottom. As new jobs are not generating while the job seekers are raising continuously in the country.
Secondly, Agriculture is account for maximum job provision in the country. Agriculture sector is facing severe challenges of water shortage, climate changes and technological backwardness in recent years. About 62% of Pakistan population is living in rural areas, and is directly or indirectly linked with agriculture for their livelihood.
Thirdly, Industry is also a heaven for educated as well as semi-educated labour force in the country. Pakistan industry is short listing its labour because of gradual decrease in demand as well as acute energy shortage. Energy shortfall has cause severe damage to productive capacity.
There is a severe type of competition in the open market. Those who are well competent and active enough stand a great chance of selection up to the standard than expected over. The copy culture has also influenced the educational system. It is backward and deficit and youths are not trained full well to come to the market demands. The ongoing educational system is divided in such a way that it classes between the people in accordance with the college and universities are infested with political parties. All of that creates confusion, rifts and tumbles between the students. The political parties member are found in undesirable criminal activities in educational institution. Therefore students after getting degrees, lag behind and it’s the reason they remain unemployed.
Effects of unemployment are social not just economic. Frequently crime rates rise as people are unable to meet their need through work. Divorce rates often rise because people can not solve their financial problems. The rate of homelessness rises, as do the rates for mental and physical illness. Homes are foreclosed and hopeless that can result from losing one’s income cannot be overstated. We have heard many times that a head of household has murdered his entire family as a result of overwhelming economic pressure. It is all due to financial disaster that pushed them over the edge. Loss of income and the resulting hardships to the individual and his or her family is the most obvious and direct effect of unemployment. In addition the unemployed person also suffers from lose of self respect and dignity in the society.
Education is a key to change and progress, both change and progress go hand in hand, no change no progress. Therefore educational system should be stabilized and changed to prepare the youths according to true values of life and especially to the market demands. All the youths belonging to elites or non elites ought to be prepared in government colleges and universities which will lead the system to reform. Moreover, industrialization should be developed in country that would lead to employment opportunities for the youths by contributing stability to the country.
The problem of unemployment is becoming more and more acute. The only way to diminish the intensity of unemployment is to encourage the youth towards the welfare of the county. The education system must be reformed up to the level of an underdeveloped country. Agriculturists must be encouraged by the government. We must have a clean and corruption free government. More and more industries must be built to provide much opportunity to the youth. Pakistan is a poor country in regard of industrialization. Therefore industrialization must be given top priority. Youths activities and energies should be directed in a useful channel for the nation’s prosperity. Unemployment is an alarming tone for the survival of the country. Solution to this problem is a must to wriggle the new generation out of the sense of deprivation
IMCB F-10/4 Islamabad