Unemployment is a major problem that has negative economic and social impacts. It is caused by factors like lack of capital investment, poverty, increased population, lack of education or skills matching jobs, and political instability. Unemployment leads to issues like decreased production and income, increased crime and health problems. Solutions include creating more job opportunities, encouraging entrepreneurship, expanding trade and industry, improving education, and attracting foreign investment. Governments aim to reduce unemployment but quick action is still needed to address this significant issue.

1. Unemployment
The rate of economic growth of any country determines its economic prosperity. There
are many factors which determines the economic development of any country like
industrialization, agriculture, population, employment etc., one of the major signal for
the economic growth is the rate of employment, as it has an adverse effect on the whole
economy. Whenever there is high degree of employment rate the production enhances
thereby improving the standard of livelihood (Anderson, 2006).
‘’Unemployment is like a headache or a high temperature -- unpleasant and exhausting
but not carrying in itself any explanation of its cause.’’
WILLIAM HENRY BEVERIDGE, Causes and Cures of Unemployment
The social and economic issues in community increases due to high rate of
unemployment in country.s. Economic complications result in low production of goods
and services, less distribution of income, loss of tax revenues, fall in GDP rate etc.
(www.economywatch.com). Social issues causes social ills and displays impact on
individuals financially and psychologically. The individuals are getting high stress
when they can not get their financial obligations which leads to problems like ill
health ,premature death,suicides etc. (Clark, 2003).
The economists narrate unemployment as a state of jobless within an economy.
Unemployment is absence of utilization of means and it eats up the yield of the
economy. It can be deduced that unemployment is inversely connected to productivity
of the economy. The history of unemployment is directly related to history of
industrialization. It leads to undesirable job losses and willing workers without job. It is
valuable to indicate here that not everyone who is out of work is seenas unemployed. A
person with a large property not searching a job is not included in the unemployed
population in that he is not keen to work in the first place, though he’s officially out of
work. As such unemployment refers to the ineffectiveness for willing workers to find
profitable employment. One of the major indicators of the economic health of the
country is the degree of unemployment. The influence is of high unemployment is seen
in the difficulty in finding mid level jobs. The fact is that minimum wage level jobs are
suitable but not considered as useful employment of the majority of the workforce
(Anderson, 2006).]
Unemployment is a worldwide curse. It is recognized as the mother of courtliness ills. It
encourages dishonesty, corruption and falsehood. It develops dark side of human
character. There are different causes of unemployment like poverty, over population,
in-effective education system and industrial development. Similarly there are various
steps to check this giant problem. No doubt the government is fully aware of this
problem but the quick remedies are needed to check this problem.
Causes of Unemployment

2. One of the major causes of unemployment is lack ofcapital. Capital is another name for
investment. It is imperative for an economy to be injected with foreign investment as it
also encourages the local investors to make the move. People are not motivated to
initiate a business whichresults in limited job opportunities. Another major cause of the
unemployment is the mindset of the people of Pakistan. Students always expect to do a
job after the completion of their education and they are never inclined to start their own
business. This is the reason people keep waiting for the job and are ultimately
discontented with their lives.
Poverty is the also the cause of this evil. Broadly speaking it is difficult to expect truth,
nobility and honesty from a person who cannot have two square meals a day. He loses
sense of self-dignity as he has no sense of security. He is worried about his survival
rather than morality. Therefore, poverty is a great danger to the state.
The increased population is also the cause of unemployment which leads to higher
unemployment rates. As the number of people who are looking for jobs is increasing, it
is more difficult to arrange jobs for all these huge numbers of workers. In this situation
the demand for work will be more than the available occupations. This will result in
increased number of unemployed individuals. An unemployment situation continues as
long as the demand-supply gap persists. This is very obvious in countries like China
and India..
The lack of education or skills for employment is also the cause of unemployment. This
happens when the qualifications of a person are not sufficient to meet his job
responsibilities. If the education was not directed towards the labour market then a
mismatch occurs thus leading to structural unemployment. These individuals face
difficulties in learning new skills applicable for the required job e.g. computer skills,
management and communication. As the need for skilled and educated workers
increase for employers, the employment opportunities for those without a college
education decrease leading to higher unemployment rate. (Morgan Drake Eckstein, nd)
Unemployment can be due to the rising cost. The rising cost makes it hard for the
companies to pay the usual optimum salary for the employees or even the minimum
wage in some cases. Hence, the employees reject low wage jobs and leave the
companies. Foe example if the price of petrol or electricity has increased this definitely
will affect the industries or factories which depend on these energy sources. Moreover,
sometimes companies need to cut down the budget due to an economic crisis, industrial
decline, company bankruptcy, or organizational restructuring, so the number of
employees is reduced or some positions are cancelled which increases the
unemployment rates.
The lack of political stability and proper political infrastructure also gives birth to
joblessness. Rapid changes in the governments and political instability surely create a
sense of insecurity for the foreign investors and the local investors as well. So, the
quick succession of the governments, with every government introducing new plans
and steps, reduces the chances of employment on permanent patterns.

3. Apart from the causes mentioned above, there are some occasional causes of
unemployment including bad harvest, floods, earthquakes, continuous rains, strikes and
revolutions etc. Discriminatory attitude towards the workers on the basis of race, sect,
colour, age and sex is also responsible for this cancer of unemployment. Keeping in
view the resources of the country, every government is trying to solve this problem in
its own way.
Effects of Unemployment
There are many obvious and well-documented social problems which are caused by
unemployment. Because of the increased spare time and stress there will be an increase
in the rates of alcoholism, drug abuse and domestic violence. Moreover, high
unemployment often results in increased marriage breakdown, divisions and
discrimination in society, suicide rates and crime rates especially among the young
(Garry Ottosen and Douglas Thompson, 1996).
Unemployment affects a personpsychologically too. Numerous studies have revealed a
relationship between unemployment and lack of self esteem and confidence leading to
depression. Besides, there is an increased anxiety and stress levels which lead to
psychosomatic diseases, personal worthlessness and powerlessness. In a study on the
“Influence of the Social Environment on Psychology” conducted in 1979 by Dr. M.
Brenner it was found that every 10% increase in the number of people unemployed on
average causes an increase of 1.2% in total mortality, a 1.7% increase in cardiovascular
disease, 1.3% more cirrhosis cases, 1.7% more suicides, 4.0% more arrests, and 0.8%
more assaults reported to the police. Furthermore, it has shown that long period of
unemployment can also reduce the life expectancy of workers by about 7 years (Alain
Anderson, Economics. Fourth Edition 2006)
Solution of Unemployment
The work force of any country usually makes up a large part of its population. In order
to cater to the needs of its people, all countries should ensure that they create many job
opportunities so that all the people who are eager to work, get the chance to do so.This
having been said the government should ensure that people are paid adequately for the
services which they provide so that at the end of the day, no person feels like he or she
is being over worked and paid less
Many of us would know that from a very young age, we are made to choose from very
specific job options. Most often than not, our parents encourage us from a very tender
age to become either doctors or lawyers or are encouraged to dream big.

4. It is for this very reason that from a very young age kids should be encouraged to
broaden their horizons. Not everyone needs to be a doctor, lawyer or a part of the
corporate jungle. There are plenty of lucrative opportunities available for individuals in
other fields as well.
It is rather unfortunate that so many able and capable people are unable to find jobs,
simply because there are not many opportunities available for them. Big and successful
companies nowadays simply want to hire the best of the best.No big corporate house is
willing to hire individuals who are unsure of what to do in a professional set up. Being
unemployed causes people to often feel sad as well as depressed, so if you have some
family member or friend who is unemployed ensure that you are there for this person in
their time of need and self doubt as well.
Moreover, sound economic planning, expansion of trade, industrial development,
better literacy rate, political stability, and foreign investment will also be greatly
helpful in solving the problem of unemployment. Briefly, man has conquered the seas
and market moon with his footsteps. Man has virtually harnessed the forces of nature to
his service. The man has reached the great heights of scientific progress. But in spite of
all this, he is literally powerless to combat the dragon of unemployment.