Question

Write 2-3 paragraphs on the causes of unemployment. The causes of underemployment. Do unemployment rates accurately measure a society's economic health? How can we improve employment?

Answer 1

Unemployment is a state where a person who is willing to work is unable to find work.

The causes of unemployment differ from country to country . But there are certain common causes.

Causes of unemployment:--

1. Government regulations and polices regarding employment and business startup.
2. Growing rate of population.
3. Slow rate of industrial development.
4. Educational backwardness.
5. Economy growing at slow pace.
6. Absence of employment opportunities.

The unemployment rate is percentage of people without job but are looking for job for period within four weeks. The unemployment rate is always a debatable question, whether it is indicating the true position of society's economic health or not. But to make it indicator of society's economic health, it is very important to see what all factors are considered while calculating unemployment rate. It include people who are jobless, actively looking for job and who are available to take job. Factors like part time jobs, discouraged workers, low waged employees, etc are not taken in calculation. The part time job or temporarily working people are considered unemployed. Person who is highly qualified but working on low wages is not considered according to his skills and abilities. Discouraged workers are also not included in unemployment rate. Unemployment rate shows the recent unemployment , it can forecast the long term changes. Hence only unemployment rate cannot be the indicator of society's economic health.

Following are some ways to improve employment:--

1. Government can make policies to increase employment opportunities.
2. Government regulation can be such that it attract workers and also helps in starting new polices
3. Industrial development can be done (labour intensive)
4. Population control.
5. Increasing the geographical mobility of workers.
6. Increasing spending on education and training and development.
7. Stronger work incentives like high minimum wage pay, induction in income tax, reduction in poverty trap, etc.