Unemployment is a status in which people are without a profitable job. It has been an major issue in most societies nowadays and is a problem that most countries have been facing and are trying to address. Moreover, when we talk about unemployment, we have to consider the employer and the employee point of view. Till this date there are significant theorical debates regarding the causes, consequences and solutions for unemployment. This essay will focus on causes and effects of unemployment in our society.
These days, one of the biggest causes of unemployment is the Global Recession. When a country goes through economic crisis, the consume of goods and services tend to reduce; as a result, many people are being sacked by their companies, in order to reduce costs and confront the crisis. The salary of employees are being fairly reduced and the rate of unemployment is rising day by day, leading to low wages for the people that are in fact employed. In addition, the recession also detracted the young job seekers, the ones out of college, to find a job because most companies can not afford to hire new people.
Another important factor is the Technological Unemployment. Technology usualy is more efficient and increases production of a company. Machines do not need vacations, breaks, insurance and can work 24 hours per day (every day); consequently, peaple are being replaced by computers. The output potencial of technology is beyond superior compared to humans, turning the human work impractical and less profitable. Nonetheless, companies do not realise that the way the mechanization rise and display people, fewer people will have money to buy their products becouse of the lack of employment. Additionally, in less developed counties lack of qualified people for certain jobs, result in many companies having vacancies and no one good enough to fill them.
To sum up, unemployment is undergoing a sort of cycle, that means when the number of unemployment and the low wages increase, the number of buyers decrease, leading to more unemployment and lower salaries. In addition, high qualification is one of the best ways to the rise the work opportunities.
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