The problems of unemployment !

I was in class 8th when I got first introduced to the concept of Unemployment. The most complex issue the countries are facing today is unemployment. 

Authored by an eminent English Economist John Maynard Keynes,  in his book The General Theory of Unemployment, Interest, and Money in 1936. In his book, Keynes focused on 3 unemployment types - Voluntary, Involuntary and Structural Unemployment. 

Though there have been several definitions of "voluntary" and "involuntary unemployment" in the economics literature, a simple distinction is often applied. Voluntary unemployment is attributed to the individual's decisions, whereas involuntary unemployment exists because of the socio-economic environment (including the market structure, government intervention, and the level of aggregate demand) in which individuals operate. In these terms, much or most of the frictional unemployment is voluntary, since it reflects individual search behavior. Voluntary unemployment includes workers who reject low wage jobs whereas involuntary unemployment includes workers fired due to an economic crisis, industrial decline, company bankruptcy, or organizational restructuring.

On the other hand, cyclical unemployment, structural unemployment, and classical unemployment are largely involuntary in nature. However, the existence of structural unemployment may reflect choices made by the unemployed in the past, while classical (natural) unemployment may result from the legislative and economic choices made by labor unions or political parties.

This often got me wondered as to why the unemployment situation happens. After all, work is work and its good to be employed as far as someone is earning money to run he show. But the dynamics of getting employed is directly proportional to what people desire. 

Based on Maslow's hierarchy theory, each and every level of needs change and when needs change the desire for people to work changes too. 

In most cases, the problem of unemployment is seen in the people who are below the poverty line. Due to the first basic need for Maslow's theory, people are not equipped with basic skills and hence over a period of time they remain unemployed and turn to daily wage laborers. 

In the present situation of the country close too 8% of Indians are dependant on the Gig economy based on freelancing because of the unemployment problem and this no. is expected to reach 24% by 2022. That bad is the situation.  

India witnesses around 7.5% unemployment rate, the US and UK have 3.8% unemployment and globally there is unemployment of 11%. 

Countries with high unemployment rates are focusing on mitigating the losses by teaching new skills, broadening the scope of doing business, creating opportunities in collaborating with companies, making people access education without discrimination and other things besides these. 

But how did these countries have huge unemployment rates? What went wrong? What could have possibly happened?

The reasons can be 

- Introduction of new technologies and inventions

- Low education quality

- status of the economy possibly through a recession or high inflation

- Learning skills that are undemanded in the ecosystem

- Fierce international trade and cut-throat competition

- Not able to fulfill the basic requirements of the job

- Local policies by the government

- Market irregularities

and many more vice versa.

Unemployment has a negative impact over the society in numerous ways, some of them are

- Lower economic growth

- Most of the aspirants go through mental and physical trauma

- People tend to find unlawful ways of earning money and hence increase in crime rates

- To get rid of unemployment stress unemployed youth accepts alcohol and drugs to cope with their stress

- Around 12,000 suicides have been observed globally due to the problem of unemployment

- Unemployment and poverty go side by side. How much ever unemployment increases, the poverty rate deepens

- At the same time where people find some source of employment, it's often termed as underemployment yet another negative metric for the country

Although there seems to be a thoughtful solution for all of these spread over a long period of time. 

But what if the problem of unemployment is solved? What does the future look like? Let's see

- The ecosystem would be full of opportunities

- A streamlined structured way of handling employment and unemployment is established

- A mere similar understanding is developed among the stakeholders

- People prioritize skills over education degrees

- A radical change in terms of the orientation of people towards jobs

Although these are pretty much far to achieve in the near future, but what one can do is level up, get skilled and start working firstly leaving behind, best salaries, top companies, and ego.

Unemployment is faced as a daily Challenge by most youth including graduates and it is very discouraging as it causes a lot of strain and Distress resulting in its contribution to increasing poverty due to lack /no income. As young people, we've to equip and expose ourselves to multiple platforms to secure relevant and skillful tools, knowledge and experience. 

We have to utilize opportunities such as extracurricular activities sports, debate and public speaking, writing and other forms of Academic activities to help equip ourselves with relevant skills such as communication, leadership, and understanding to help ourselves overcome unemployment.  As a young generation and we should use all the skills in becoming entrepreneurs. 

Networking & keeping up with Trends & Macro changes is important as you understand your own personal market position in terms of being skilled /employable. 

We should stop depending on the government to create job opportunities we need Entrepreneurs that will employ & provide economic growth. States should allocate funds to support Young Upcoming and Innovative Business concepts and entrepreneurs. And stop giving every financial investment, tender, and funding to well-established businesses as this is only creating a bigger gap in unemployment and Should Support Young Businesses that Actually understand the needs & trends of the young generation.