Unemployment is a social and economic phenomenon where the able-bodied part of the population cannot find a job, that is, cannot find application to their work. The causes of unemployment can be many factors, the most important reason is the excess of the number of people who want to find work over the number of jobs available.
As a result of the fact that people try, but cannot find work, the consequences of unemployment are revealed. There are two concepts of the consequences of unemployment - social and economic.
The social consequence of unemployment suggests that in this case, labor resources are underutilized. Society strives to ensure that its resources fully ensure the realization of production potential. In other words, we can say that the attraction of resources does not completely affect the society, the principle that must be effectively used is violated here. Unemployment can affect the entire economic side of the country. Also, unemployment can cause psychological trauma to people who are left without work. These people feel inferior and unnecessary, superfluous in society. It is not for nothing that doctors claim that the consequences of unemployment have a negative impact on the mental and physical condition of people, they begin to experience malaise, headaches and insomnia.
Unemployment greatly affects young people who graduate from schools. After graduating, young people try to find a job that is suitable for their qualifications, but, meanwhile, they are refused because of a lack of professional training.
Some experts argue that the effects of unemployment can go as far as death or prison. This is commented on by the fact that unemployed people who are in a psychological negative mood are extremely pessimistic and can take the side of a criminogenic environment. That is why in every country the problem of unemployment comes first. The consequences of unemployment include: a decrease in family income, aggravation of family relations and social tension in society.
From the point of view of the economic side, the consequences of unemployment lead to serious social and economic costs. The most important negative consequence is the inoperative state of citizens who are able-bodied, and this, in turn, leads to a reduction in economic potential. Thus, we can say that unemployment inhibits the development of society, and also contributes to the underutilization of productive resources. And as a result of this, the growth of the economy decreases, the growth of the increase in GNP stops.
In the West, such a concept as unemployment types and its consequences are considered from several sides:
- unemployment may arise as a result of too high wages;
- if there is a low demand for workers;
- if the labor market is not flexible and is determined by the specifics of the goods as labor.
Unemployment types and its consequences come in several forms:
- Frictional or fluid unemployment, reflecting staff turnover, which is associated with a change of place of residence, workplace and other areas.
- Structural unemployment, which is a consequence of fluid unemployment. Here perestroika is taking place not only in the company, but also in the whole country. The turnover of labor increases when new proportions are created, the relationship changes and jobs are distributed. Structural unemployment is a very difficult form, here the costs of retraining people, changing their education and providing institutions for continuing education are very high.
- Institutional unemployment occurs when the organization’s work is not effective.
- Cyclical unemployment results from depression or crisis.
- Voluntary unemployment, when the unemployed themselves do not want to work.
- Hidden unemployment, when people work part-time, and the rest of the working time is on forced leave.
- Stagnant unemployment, where workers work at home only for some seasons, the rest of the time remain unemployed.
Thus, the negative consequences of unemployment is a phenomenon that must be carefully tackled, because people's lives and future relationships depend on it.