Unemployment, What a Bummer
by Mattevan on February 28, 2017 - 10:51am
The world may seem flawless on hot sunny days spent at the beach, however, whether it’s hard to believe or not, there is an abundance of issues that are occurring in this very moment. One of these serious problems is unemployment. Unemployment is the phenomenon of an individual who is currently out of work. For those who are unemployed, experiencing this crisis may cause them numerous personal problems. Unemployment can also damage a society. For example, if the number of unemployed civilians in a society is high, this can decrease the overall spending which reduces its GDP affecting its economy drastically. Also, the longer someone is unemployed, the more difficult it becomes for that person to get another job because according to Tom Ryan; “…the longer you are unemployed, the less attractive you might be to potential employers.” (Ryan, 2017). This article will elaborate the importance of improving unemployment as a priority to consider by observing the economic and psychological defects it has on individuals and societies.
The first element of society, that will be discussed, which is greatly affected by unemployment is the economy. One issue that high unemployment creates is a drainage of government wealth. The government provides monetary assistance to those who are unemployed. If the unemployment rate is exceedingly high, this can cause the government to be forced to slow down economic growth in order to pay for their unemployed civilians. Another problem that occurs in an economy when unemployment rates are high is a slowed down flow of money coming in and going out. When money is not circulating much in an economy, growth becomes sluggish. This phenomenon took place in both the United States and Canada during the housing crisis in 2008. As stated in a research paper written by Saki Bigio & Jennifer La’O; “As unemployment rose, this further pushed down aggregate demand: consumption fell among laid-off workers.” (Saki Bigio, 2011). This decrease in consumption stunted the economies, which lowered Canada’s and the United States’ GDPs. The GDP of Canada went down to a shocking -2.8%. the GDP of the United States went down to -2.9%. This information is illustrated in the diagram below. Wage inflation may also occur due to unemployment. This is caused due to the increase of job competition. This issue harms those who are currently employed because their salaries are reduced severely.
The second element of society, that will be elaborated in this article, which is highly affected by unemployment is the psychological effects it has on individuals. Losing a job can sometimes be a really rough thing to accept for some. It has the potential to “… leave someone stripped of their economic identity” (Young, 2012) resulting in them having a search for a sense of failure and filled with doubts about their future. Those without a job come to feel unworthy, incomplete and inferior. All these negative thoughts that the unemployed undergo does a number on their psyche. These thoughts may manifest negative emotions. These individuals may feel depressed and anxious about their situation.
Unemployment is a problem that every country in the world faces. It is impossible to eliminate this issue permanently but there are ways to reduce it. The main thing that governments should look out for is a decrease in GDP. Usually when GDP is falling, not only unemployment will be at risk but other social science aspects such as the environment, culture and the well beings of civilians.
1. What are some strategies that can be used by a country to increase job opportunities for those unfortunate enough to have been laid off of their prior career?
2. How do you think a country can improve on ensuring its civilians long-term careers without having the fear of them potentially losing their jobs due to economic slow downs?
3. What are constructive ways of thinking that can change the thought behaviours seen in those unemployed that can potentially gain them confidence, happiness and a job sooner than later?
Link to a video:
Pokharna, U. (2011, December 29). How Does Unemployment Affect the Economy. Retrieved from Buzzle: http://www.buzzle.com/articles/how-does-unemployment-affect-the-economy....
Ryan, T. (2017). The Overal Effects of Unemployment. Retrieved from Chron: http://smallbusiness.chron.com/overall-effects-unemployment-37104.html
Saki Bigio, J. L. (2011). The 2008 Financial Crisis: Institutional Facts, Data and Economic Research. August.
Waring, D. (2013, May 30). Canada GDP Current and Historical Data. Retrieved from Forexnews: http://www.forexnews.com/blog/2013/05/30/canada-gdp-2/
Young, C. (2012). Losing a Job: The Nonpecunitary Cost of Unemployment in the United States. Stanford: Stanford University.