Essay On Impact Of Unemployment

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Unemployment is when a person is searching for a job but could not find one,they are actively searching and are willing to do work.
Unemployment rate is a measure of the number of people who are both jobless and looking for a job.Economy faces high unemployment in the period of recession.6% of world’s workforce were without job in 2012 according to ILO report.
Unemployment have a negative impact on the growth of the economy.It is harmful for the economy’s growth because it increases poverty and waste resources.
There are three types of unemployment which are cyclical,frictional and structural unemployment.
Structural unemployment is due to lack of skills or wrong area desired for work,when there is advances in technology workers need to acquire …show more content…

Unemployment is one of the biggest problems of the economy .In Pakistan there are 113billion people who are unemployed.Unemployment has risen to 8.3% during 2015.It is expected that this rate will increase to 8.6% in 2016,the major reason is economic growth is not sufficient to create new …show more content…

Government has to pay the unemployed some benefits. The greater the number of the unemployed or the longer they are without work the more money the government has to shell out. The nation not only therefore, has to deal with the lost income and decreased production but also with additional cost.
Spending power
The spending power of an unemployed person and his/her family decreases drastically and they would rather save than spend their money, which in turn affects the economy adversely.
Reduced spending power of the employed
Increased taxs and the insecurity about their own work may affect the spending power of the working people as well and they too may start to spend less than before north ayrshire affecting the economy and also the society in a negative manner.
Recession
With the increase rates of unemployment other factors are significantly affected, economy such as: the income per person health costs, quality of health-care, standard of leaving and poverty. All these affect not just the economy but the entire systems and the society in

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