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Unemployment and its impact on the society Essay


1.1) Preamble:

Unemployment is an evil that has been creating hurdles in the way of economic growth and development. Unemployment monster preying on Pakistani. Different nations have tried to wipe out the hurdle of unemployment but unfortunately due to lack of proper planning and techniques this problem remains as it is. The rate of unemployment shows the condition of the society. When there is high rate of unemployment, citizens suffer a lot. There are various reasons for the rampant unemployment, these are manifold: lack of education, skills, experience, structural mismatch, etc. Moreover, there are numerous horrible impacts of unemployment on the society such as increase in crime rates, frustration among people, and rise in suicides, income disparities and so many others.

Among all the social evils, it is the worst issue as it leads to create low income generation, as a result of it low demand for goods and services and low productivity take place. That indirectly leads to increase crime rates, corruption in the society. FPCCI regional chairman Sheikh Abdul Waheed Sandal said that textile, engineering, plastic, leather, services and other are facing shortage of skilled professionals though unskilled labor force is available everywhere. “There is huge mismatch in market requirement and production of educational institutions,”

1.2) Historical Development:

From the beginning, unemployment has been the biggest hurdle that leads to waste of resources which is deteriorating the economic and social conditions of the society. High unemployment rate as recorded in 1999 is 2.9% , in 2010 its 5.6% , in 2013 its 6% , and now its 6.2% estimated. It has been observed that it is more in rural ares than in urban areas. As Industrial Development has been taken place working class gets job opportunities. With the passage of time, population increases that leads to create gap between the people and job opportunities. High unemployment rate in South Asian countries is an important issue which should be kept in a lime light. It has negative impact on the economy as it raises the internal and external issues of the country, such as; poverty, break down, social isolation that lead to erosion of a healthy society.

1.3) Important Practical Issues:

Here in Pakistan, There is a need to counter both male and female unemployment to raise the productivity of the society. People living under poverty line are 24% (2005-06) where disguised unemployment is at large. Due to cultural mindset people keep themselves away from education and became unskilled. These are the facets of Pakistan‘s unemployment. Moreover, citizens are in need of technical and vocational training, education system according to the requirements of the society. It has been observed that why unemployment is high in Pakistan and there are various effects of it on the society. More evils are producing in the society due to it. For instance there are social, economic, political aspects that are being badly affected by unemployment.

It has been observed in this society that poverty and unemployment lead to create frustration, mental disorder. As people suffer financial strain the think about the wrong directions to earn and if through these bad intentions they do not earn to spend a happy life. Then in that situation they attempt suicide. This is the mental disorder that should be eliminated among the people by providing more opportunities for jobs. The financial strain is a best predictor of psyche of the people. By providing a right direction to the citizens this future risk of suicide etc can be eliminated from their lives.

1.4) Literature Review:

Various literatures are available which is helpful for the subject matter to find its impacts on the society. Literature review helps us to find its causes, degree, historical developments and its failure in the society. Many studies investigate determinants of unemployment. As people who are unemployed in a long run they create problems for the economy.

1.5) Research Problems:

The research problem is focusing on the issue of unemployment. The literature review is a source to solve the research problem. The problem of unemployment relates to businesses, social, economic sectors because due to unemployment all the socio economic evils arise. It creates hurdles in the development of the society by creating frustration among people, by increasing crime rates, low demands etc. The purpose of the study is to study descriptive goals of research. PROBLEM STATEMENT: “The aim of this research is to control rampant unemployment and to counter its negative impacts on the society”.


This research will be beneficial to answer the following questions: 1. What are the causes of unemployment & how it can be reduced? 2. What are the impacts of unemployment on the society & what are the remedies to counter it? 3. What are the ways and means to increase employment opportunities in the long run?

1.6) Purpose of the study:

The purpose of the study describes the goals and objectives that are the target of the research. Goals are to be set in the beginning then start to accomplish the objectives. A) The goal of this study is to:

To understand the causes of unemployment.
To overcome negative impacts of it on the society.
To find ways to increase employment opportunities in the long run.

B) The objectives of the study:

To reach the goals, I will explain the following procedure to help me in my research work. a) There is a need to provide education, training, counseling to the unemployed citizens. b) To provide information to the citizens about the cost of unemployment and benefits of employment for the society. c) To conduct research for causes of unemployment.

d) Give strategies for improving employment level in the long run.

1.7) Justification:

This study is important to understand the causes of unemployment (variable) and its impacts on the society. It will be helpful for the Economists, citizens and researchers. My research will be help for different sectors for instance Agriculture, Industrial, and Manufacturing sector. It will be helpful in Economic planning of the society to raise the employment opportunities and other opportunities in the short and long run. Moreover, I will try to add my research work to fill the knowledge gap and provide originality in my work. My research will provide understanding about the economic impacts as well as the social and political impacts on the society. Because unemployment leads to produce negative impacts.

However, it has been observed that high unemployment rate can be reduced by Fiscal policy of the government. By which government can raise it spending’s on the projects that can lead to decrease the unemployment rate. Fiscal policy can also be helpful if it is made according to the conditions of the society. This research demonstrates the usefulness of it for the rural and urban development. So that the societies grow in unison. In this way Pakistani society can achieve economic growth and development. This research will change the thinking of the people they will think from another prospect to achieve a job for better life as well as they will give importance to their lives as it is a gift of God and no one can dare to end it by own self.


My research will take into account only unemployment that will affect the society. There will be one more thing that will not take into cosideration that is the natural calamities. Unemployment is a phenomenon that is different in the different economies of the world.


This study will be conducted to take into account the economy of Pakistan. It will provide recommendations to decrease unemployment level by various steps to control it and provide more opportunities in future with the help of better planning and techniques. The research will be applicable to counter impacts of unemployment on the society. As these impacts are horrible. All these negative impacts are serious for the socio economic conditions of the society. The mission of this research is to the employment level. The scope consists of the following things that should be done for instance: development programs, trainings, conduct research, policies that benefit the citizens of Pakistan.

2.0) Definition of key words:

1. Unemployment: Unemployment occurs when a person who is actively searching for employment is unable to find work. 2. Economic Growth: an increase in the amount of goods and services produced per head of the population over a period of time. 3. Economic Development: it is the sustained actions of policy makers and communities that promote the standard of living and economic health of a specific area. 4. Economic Planning: it is a mechanism for economic coordination with the market mechanism. 5. Unskilled Labor: A segment of the work force associated with a limited economic value, low education level for the work performed (human capital). 6. Waste of resources: Resources consumed in an inefficient manner.

7. Fiscal Policy: When government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. 8. Planning Techniques: It includes Procedures, strategies and theories of planning. 9. Socio economic condition: It as an umbrella term to cover a wide variety of interrelated social and economic factors that tend to explain these phenomena.

2.1) Acronyms :

1. FPCCI : stands for Federation of Pakistan Chambers of Commerce and Industry.

2.2) References :

1)DETERMINANTS OF UNEMPLOYMENTEmpirical Evidences from Pakistan http://pu.edu.pk/images/journal/pesr/PDF-FILES1/5%20MAQBOOL%20Determinants%20of%20Unemployment_V51_No2_Winter2013.pdf 2)Causes of Youth Unemployment in Pakistan

3)Pakistan’s Poverty Reduction Strategy:Why Employment Matter http://www.lahoreschoolofeconomics.edu.pk/JOURNAL/Special%20Edition%2005/Rashid%20Amjad.pdf 4)pakistan unemployment rate
5)rising unemployment in pakistan
http://nayyab.wordpress.com/2010/05/08/rising-unemployment-in-pakistan/ 6)employment situation of women in pakistan
http://www.emeraldinsight.com/doi/abs/10.1108/03068291111091981 7) Impacts of inflation,growth on unemployment
http://cgr.umt.edu.pk/icobm2013/papers/Papers/IC3-Dec-2012-083.pdf 8)Pakistan’s Poverty Reduction Strategy: Why Employment Matters http://www.lahoreschoolofeconomics.edu.pk/JOURNAL/Special%20Edition%2005/Rashid%20Amjad.pdf

2.3) Appendix:
http://pu.edu.pk/images/journal/pesr/PDF-FILES/5%20MAQBOOL%20Determinants%20of%20Unemployment_V51_No2_Winter2013.pdf This article explains the determinants of unemployment. Article:2
www.pide.org.pk/pdf/PDR/2007/volume4/611-621.pdf This article illustrates the causes of youth unemployment in Pakistan and various reasons for the high unemployment rate.

http://www.lahoreschoolofeconomics.edu.pk/JOURNAL/Special%20Edition%2005/Rashid%20Amjad.pdf This article gives the light on the strategy for the reduction of poverty in Pakistan.It also explains that why employment is important for reducing poverty.

http://www.indexmundi.com/pakistan/unemployment_rate.html this article explains about the unemployment rate in Pakistan from 1998-2011.

http://nayyab.wordpress.com/2010/05/08/rising-unemployment-in-pakistan/ It shows the rising unemployment trend in Pakistan.

http://www.emeraldinsight.com/doi/abs/10.1108/03068291111091981 This article shows the employment situation of women in Pakistan.

http://cgr.umt.edu.pk/icobm2013/papers/Papers/IC3-Dec-2012-083.pdf This article explains the impacts of inflation and economic growth on unemployment.

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