Unemployment,Effects And Solution
Globally, unemployment has been a pain in the neck especially now that the global recession has set in, it has increased arithmetically as well as geometrically thereby defying nearly all known solution.
From the layman point of view, unemployment can be seen as just being jobless or a state of joblessness. Being jobless is frustrating emotionally, socially psychologically on the part of the unemployed as well as affecting the country security- wise because many unemployed youth take to crime thereby creating fear in the minds of the innocent in the society.
However, is unemployment merely being jobless? Or there are other meaning attached to it. So that will now bring us to the meaning of unemployment from the economical point of view. Economically, unemployment is a two way thing, both mean the same thing.
Firstly, it refers to the situation whereby factors of production are unengaged or not utilized in productive activities that can earn them income.
Secondly, with regards to labour, unemployment refers to the non-utilization of labour in any productive activity for a reward in terms of wages or salaries or profits. A careful analysis shows that both definitions are the same because there are three factors of production- labour, land and entrepreneurship of which of man belongs to the labour aspect of the three factors of production. If labour is unengaged or under-utilized or not utilized at all it means there will be idle minds and idle mind is the devils workshop, it is also wasteful to the nation because it affects the GDP-Gross Domestic Product.
Furthermore, there is several cause and types of unemployment for instance; there are people who are considered unemployable because they are physically and mentally handicapped or deficient. They are some who are physically handicapped, so much that they cannot be employed and paid the exiting wage rate knowing very well that productivity will naturally will be too low. This is regarded as residual unemployment.
Secondly, there is other that has to do with season. For example people working in construction
and building companies. They become unemployed as a result of bad weather condition- rainy season. But in the dry season they become employed. This set of people is regarded as seasonal unemployment.
In addition, some people can decide to be unemployed because they have wealthy parents and relation they depend on for help. They prefer to be unemployed because they want to get a high paying job so until then they remain unemployed.
Another type cause of unemployment is being grossly under-utilized that is people who are producing below capacity because most part of the year they remain idle. Example is West African Farmers who produce far below capacity because for most part of the year they are at home.
Finally, there are people who are unemployed as a result of the economic recession- down swing of trade or business which has to do with depression (economic meltdown) so that nearly all forms of production are affected. People become unemployed because goods and services produced are not bought. This type of unemployment is regarded as cyclical unemployment.
The effects of unemployment are so numerous but they will be summarized in a few words, firstly the person become frustrated, downcasted, emotionally, economically and psychologically. But the major effect is the twin effect of under-utilization of lab our which in turn results in the wastage of both human and material resource. As a result of this, people go into criminal activities.
It solution can be derived from the leveraging of the great potential in Agriculture .Government all over should encourage youth to go into agriculture by providing enabling environment in terms of stable government policy as well as subsiding agricultural inputs. Small and Medium scale businesses should also be encouraged.