Unemployment can be defined as a person above a specified age not being in a paid or self-employment but currently available for the work during the reference period. Sometimes, the word ‘unemployment’ is misunderstood as the people who are actively looking for work come under the category unemployed but those who have left their work due to various reasons such as higher education, disability, etc. and also, people who are not actively seeking a job but want to work are not classified as unemployed. The state of being without any work and looking for work is known as unemployment.

Types of Unemployment
There are four types of unemployment:
1. Demand Deficient Unemployment
2. Frictional Unemployment
3. Structural Unemployment
4. Voluntary Unemployment

Demand Deficient Unemployment
When companies face reduction in the demand of their products or services, they cut off their production and reduce their work force. As a result, some workers are laid off. This is the biggest cause of unemployment.

Frictional Unemployment
The time period in which an individual that has recently quit or fired and is looking for a job in a company which is not experiencing any kind of loss is known as frictional unemployment. It is also known as search unemployment and it can be voluntary based on the circumstances of the unemployed individual. It is not an unhealthy thing because it is caused by workers due to the urge of finding job that is more suitable to their skills.

Structural Unemployment
It happens when the skills of a worker doesn’t match with the skills required for job or when workers are available, but are unable to reach the geographical location of the jobs. Seasonal unemployment can be an example of structural unemployment (construction and migratory farm work).

Voluntary Unemployment
Voluntary unemployment happens when a worker decides to leave a job due to number of reasons like low pay or amount of benefits given by government while not working.

Causes of Unemployment
Unemployment is caused due to several reasons from both the demand side or employer, and supply side or worker. From employer, causes can be high interest rates, global recession and financial crisis. From worker, causes can be frictional and structural unemployment.

Effects
Unemployment causes workers to suffer financial hardships that affect families, relationships, and communities. It results in reduced demand of products and business which results in lower profit and leads to budget cuts and workforce reductions.

Unemployed individuals face financial crisis. Sometimes, they are unable to pay rent and it leads to homelessness. It increases susceptibility to cardiovascular diseases, anxiety disorders, depression and suicide. It also leads to tobacco smoking, alcoholic beverage and drug addiction and lower rates of exercise. Unemployment affects relationships.

Long-term Unemployment vs. Short-term Unemployment
Unemployment that lasts longer than twenty seven weeks even if worker is attempting to find a job for the last four weeks, it is known as long-term unemployment. Its effects are more worse than short-term unemployment for some obvious reasons. Effects are:
• Some 56% of the long-term unemployment has reported a significant decrease in their net worth.
• Not only financial problems are the effects of long-term unemployment as 46% of those in such a state have reported strained family relationships.
• 43% of the long term unemployed has reported a significant effect on their ability to achieve career goals.
• 38%of these individuals have lost their self respect and 24% are seeking professional help.
Unemployment is a serious social and economic issue that results in a huge impact on everything but is often overlooked. A stronger system of assessing unemployment should be put in place in order to determine its causes and how to address it better.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

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