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Effects of Unemployment on
Economy
 Unemployment
 Classification of Unemployment
 Causes
 Effects of Unemployment
 Measures of Unemployment
 Unemployment and Economic Growth
 Solutions
Unemployment refers to the
situation in which the workers
do not get employment.
Unemployment
Involuntary
Voluntary
Disguised
Demand Deficiency
Seasonal
Structural
Frictional
Unemployment that results when resources
decide to leave one job often in search of
another.
The contrast to voluntary unemployment is
involuntary unemployment in which resources are
forced out of work , also known as Forced
Unemployment.
It results because it takes time for workers to
search for the jobs that best suit their tastes
and skills.
Structural Unemployment arises because the
number of jobs available are insufficient.
Seasonal unemployment occur when an
occupation is not in demand at certain
season.
It arises when people are out of work because
of lack of aggregate demand.
When people do not have productive full-time
employment, but are not counted in the
official unemployment statistics.
 High Population Growth
 Absences of employment opportunities
 Increasing turnout of students from universities
 Slow developing industries
 Inflation
 Recession
 Changes in technology
 Willingness to work
 Disability
 Discriminating factors
 ECONOMIC EFFECT
1. Wastage of human resources
2. Low income
3. Low saving
4. Low capital formation
5. Low living standard
6. Low lobour productivity
 Social Effect
1. Wide gap between rich and poorclass conflicts
2. Social unrest
3. More illegal activities
 At Individual Level
1. Mental stress
2. Loss of self esteem
3. Directly linked to poverty
 Employed Any person 16 years old or older
1. who works for pay, either for someone else or in his
or her own business for 1 or more hours per week,
2. who works without pay for 15 or more hours per
week in a family enterprise, or
3. who has a job but has been temporarily absent
with or without pay.
 Unemployed A person 16 years old or older who is
not working, is available for work, and has made
specific efforts to find work during the previous 4
weeks.
 Encouragement to small enterprises
 Subsidies on the basis of employment
 Encouragement of new growth centers in small towns
and rural areas
 Increased government expenditure
 Lower taxation
 Lower interest rates
 Employment subsidies
Effects of unemployment on economy
Effects of unemployment on economy

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Effects of unemployment on economy

  • 2.  Unemployment  Classification of Unemployment  Causes  Effects of Unemployment  Measures of Unemployment  Unemployment and Economic Growth  Solutions
  • 3. Unemployment refers to the situation in which the workers do not get employment.
  • 4.
  • 6. Unemployment that results when resources decide to leave one job often in search of another.
  • 7. The contrast to voluntary unemployment is involuntary unemployment in which resources are forced out of work , also known as Forced Unemployment.
  • 8. It results because it takes time for workers to search for the jobs that best suit their tastes and skills.
  • 9. Structural Unemployment arises because the number of jobs available are insufficient.
  • 10. Seasonal unemployment occur when an occupation is not in demand at certain season.
  • 11. It arises when people are out of work because of lack of aggregate demand.
  • 12. When people do not have productive full-time employment, but are not counted in the official unemployment statistics.
  • 13.  High Population Growth  Absences of employment opportunities  Increasing turnout of students from universities  Slow developing industries  Inflation  Recession  Changes in technology  Willingness to work  Disability  Discriminating factors
  • 14.  ECONOMIC EFFECT 1. Wastage of human resources 2. Low income 3. Low saving 4. Low capital formation 5. Low living standard 6. Low lobour productivity
  • 15.  Social Effect 1. Wide gap between rich and poorclass conflicts 2. Social unrest 3. More illegal activities
  • 16.  At Individual Level 1. Mental stress 2. Loss of self esteem 3. Directly linked to poverty
  • 17.  Employed Any person 16 years old or older 1. who works for pay, either for someone else or in his or her own business for 1 or more hours per week, 2. who works without pay for 15 or more hours per week in a family enterprise, or 3. who has a job but has been temporarily absent with or without pay.  Unemployed A person 16 years old or older who is not working, is available for work, and has made specific efforts to find work during the previous 4 weeks.
  • 18.  Encouragement to small enterprises  Subsidies on the basis of employment  Encouragement of new growth centers in small towns and rural areas
  • 19.  Increased government expenditure  Lower taxation  Lower interest rates  Employment subsidies