Causes+And+Conseq+Of+Unemployment


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CONSEQUENCES: Unemployment has obvious and well-documented links to economic disadvantage and has also been connected in some discussion to higher crime rates (Cantor and Land 1985; Ottosen and Thompson 1996), especially among the young (Britt 1994), suicide, and homicide (Yang and Lester 1994; Ottosen and Thompson 1996). Garry Ottosen and Douglas Thompson (1996) broaden the consequences of unemployment, relating it to increases in the incidences of alcoholism, child abuse, family breakdown, psychiatric hospitalization, and a variety of physical complaints and illnesses. Some researchers have emphasized the importance of preventing youth from falling into unemployment traps. Robert Gitter and Markus Scheuer (1997) suggest that unemployment among youth not only causes current hardship, but may also hinder future economic success. This is because unemployed youths are not able to gain experience and on-the-job training and because a history of joblessness signals that the individual may not have the qualities that are valued in the labor market.
 * __Unemployment may impair the functioning of families (see, for example, Liker and Elder 1983; Barling 1990) by affecting the parents' interactions with their children and the interactions between partners. Although it has been shown that unemployed parents spend more time with their children, the quality of these interactions suffers in comparison with those of employed parents. Unemployment, particularly among male partners, is also likely to lead to major role changes in the home.__**

According to the Keynesian economic theory, unemployment results from insufficient effective demand for goods and services in an economy. Some believe that structural problems and inefficiencies in the labor market cause unemployment. Others believe that regulations like minimum wage laws imposed on the labor market lead to unemployment. Some thinkers believe that unemployment is a result of the law of demand and supply not being applied in case of employing people. A decline in the demand for products or services of a company does not result in the decrease in wages of the company employees. And this may strike an imbalance in the economy.

Unemployed individuals have to go through a tight economic crunch. They are unable to meet their financial obligations. This may lead to a decline in their standard of living. Lack of funds is sure to have a deep impact on their expenses. The consequences of employment can be as grave as homelessness due to failure of the unemployed individuals to repay home loans or pay house rents. Underemployment is one of the serious consequences of unemployment. On losing jobs, people are forced to take up jobs that do not befit their skills, experience and educational qualification. The other major consequence of unemployment is anxiety in the minds of the unemployed people. Unemployed individuals become pessimistic about life and may have to face psychological problems resulting from mental stress.

Unemployment hampers the economic as well as the social status of society. Unemployment benefits serve as a strong support during the period of one’s unemployment. An individual can claim the unemployment benefits if he/she has been forced to quit the job. To know more about this, read about [|applying for unemployment benefits]. Unemployment benefits are a temporary relief from unemployment. The real solution to unemployment needs to be found out by carefully analyzing its causes. The causes of unemployment need to be analyzed carefully to find a solution to this calamity called unemployment, which eclipses life.

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