Unemployment is a tragedy for both the unemployed and members of his family. The consequences of unemployment go beyond the limits of material wealth. With a long absence of work, qualification is lost and it becomes impossible to find a profession by profession. The lack of a source of existence leads to loss of self-esteem, a decrease in moral principles and other negative consequences. There is a direct correlation between the growth of mental, cardiovascular diseases, suicides, murders and high unemployment. Mass unemployment can lead to great political as well as social changes.
Unemployment hinders the development of society, prevents it from moving forward.
Main types and causes of unemployment
Types of unemployment: voluntary, structural, seasonal, cyclical, frictional.
- Seasonal unemployment, its reasons is that some work is possible only in some season, at other times people are sitting without earning.
- Structural unemployment arises from a change in the structure of production: old specialties disappear, and new ones appear, which leads to the re-qualification of personnel or the dismissal of people.
- Frictional unemployment arises as a result of the fact that a worker who has been dismissed or left the workplace at his own will takes time to find a new job that suits him for payment and work.
- Voluntary unemployment. Appears when there are people who do not want to work for different reasons, or if the employee himself leaves, because of discontent with some circumstances of work.
- Cyclic. There are countries with a general economic downturn, when the number of unemployed people exceeds the number of vacancies.
Consider the positive and negative social and economic consequences of unemployment.
Social consequences of unemployment
Negative consequences of unemployment:
- decline in working activity;
- increased tension in society;
- an increase in the number of mental and physical diseases;
- aggravation of the criminal situation;
- strengthening of social differentiation.
Positive effects of unemployment:
- increase leisure time;
- widening the choice of places of work;
- increasing the importance of labor;
- raising the value of the workplace.
Economic consequences of unemployment
Negative consequences of unemployment:
- devaluation of training;
- narrowing of production;
- loss of qualifications;
- expenses for unemployment benefits;
- a drop in the standard of living;
- insufficient production of national income;
- decrease in the number of tax revenues.
Positive effects of unemployment:
- Time is freed to increase education and retraining;
- stock of workers for structural reconstruction of the economy;
- productivity and labor intensity are stimulated;
- Competition contributes to the development of skills among workers.
Psychological consequences
It was noted that the higher the position held by a person, and the more time has passed since the time was fired, the greater the experience associated with the lack of work.
Unemployment is an important indicator by which one can draw a conclusion about the economic development of the country, and without eliminating this problem it is impossible to regulate the productive activity of the economy.