Unemployment is described as a situation where a person is qualified and available to work but cannot get a job placement. Though causes of employment vary with specific regions and time, economy imbalance is the main cause applying to all locations in world. Inflation is one of the main causes of economy imbalance that leads to high rate of unemployment
- Inflation– In cases where a country suffers high inflation rate the export business is negatively affected. This consequently reduces the income of the country, which in turn will affect growth and maintenance of the existing businesses as well as opening of new ones. All this will finally lead to reduced employment opportunities.
Unemployment has negative and positive effects depending on how it’s handled. Apart from unemployed individuals it also affects the whole nations and its population.
In most cases employed individual’s feels threatened by the high rate of unemployment. This may lead to increased productivity in businesses as the employees work had to retain their positions.
Insecurity is a common issue in cases where a nation is experiencing high rate of unemployment. This has been attributed to bitterness of the qualified yet unemployed individuals as well as their efforts to meet their needs.
Increased cases of corruption are another significant characteristic of unemployment. Due to limited chances of employment unemployed individuals become desperate while those holding high positions become greedy and abuse the situation by asking for favors or bribes.
Though unemployment affects the whole nation at large its effects are more to the unemployed individuals. It mostly affects them psychologically as discussed below.
Stressful life– The failure to meet ones needs and reduced chances of success eventually leads to stress. Unemployed individual feels frustrated, and hopeless
Health issues –Due to stress unemployed individuals might suffer to emotional related illness like depression and blood pressure. In most cases it takes long for them to discover or accept their conditions and this might make the situation worse (Stanley, 1998).
Reduced confidence and low esteem– Perceived failure to succeed and lack of enough money to meet ones needs leads to lack of confidence and lack of self esteem. One feels worthless.
Reduced Willpower and Enthusiasm-Unemployed individuals feels demoralized especially considering their qualifications. This affects the person’s ability to do even the simplest task.
However as the world is changing unemployed has to numerous creative ideas and consequently innovations. As the old saying goes `necessity is the mother of innovations unemployment gives innovation good environment to thrive.
Stanley, Lebergo. Manpower in Economic Growth: The American Record since 1800, 1998, New York: McGraw-Hill