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Unemployment: Causes, Effects, and Solutions

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Published: Jan 30, 2024

Words: 685 | Pages: 2 | 4 min read

Table of contents

Introduction, causes of unemployment, effects of unemployment, solutions to combat unemployment, a. economic factors.

  • Global recession: During economic downturns, companies may reduce employment to cut costs and remain competitive.
  • Automation and technological advancements: The use of machines and technology may replace human workers in some industries, leading to job losses.
  • Outsourcing of jobs: Companies may choose to outsource jobs to other countries where labor costs are lower, leaving domestic workers unemployed.

B. Societal Factors

  • Lack of education and skills: Individuals without proper education and job training may be ill-equipped to meet the demands of a constantly evolving job market.
  • Discrimination in hiring processes: Certain groups, such as women, minorities, and older workers, may face barriers in securing employment due to discrimination.
  • Dependency on welfare programs: Some individuals may choose to remain on welfare programs due to a lack of incentive to enter the workforce or because they cannot find suitable employment.

A. Economic Effects

  • Reduction in consumer spending: Without a steady income, unemployed individuals may have less money to spend, resulting in a decline in consumer spending.
  • Decline in government revenue: With fewer people working, the government may see a decline in tax revenue, which can impact its ability to provide necessary services and promote economic growth.
  • Increase in social welfare expenses: The government may need to allocate more funds toward social welfare programs, such as unemployment benefits and food assistance, to support those who are unemployed.

B. Social Effects

  • Increase in crime rates: Individuals who are unemployed may resort to criminal activities to make ends meet, leading to a rise in crime rates.
  • Mental health issues: Unemployment can cause stress, anxiety, and depression, which can negatively impact an individual's mental health.
  • Strained relationships and family instability: Unemployment may cause financial strain and tension within families, leading to relationship problems and instability.

A. Economic Solutions

  • Encouraging entrepreneurship and small business development: Providing resources and support for individuals to start their own businesses can lead to job creation and economic growth.
  • Promoting vocational training and skill development programs: Ensuring that individuals have access to education and training programs can increase their job readiness and competitiveness in the job market.
  • Implementing balanced trade policies: Creating policies that promote fair trade and reduce job outsourcing can protect domestic jobs and promote job growth.

B. Social Solutions

  • Addressing educational disparities and providing access to quality education: Providing quality education to disadvantaged communities can improve their job readiness and reduce unemployment rates.
  • Combating discrimination in the workplace: Enforcing anti-discrimination laws and promoting diversity and inclusion in the workplace can reduce barriers to employment for certain groups.
  • Strengthening social safety net programs: Ensuring that social welfare programs are designed to incentivize work and provide support to those in need can promote economic stability and reduce poverty.
  • Bureau of Labor Statistics. (2021, October 8). Employment Situation Summary. https://www.bls.gov/news.release/empsit.nr0.htm

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essay the problem of unemployment

Unemployment Essay

500+ words essay on unemployment.

Unemployment is a serious problem among young people. There are thousands of people who do not have any work to do and cannot find work for themselves. Unemployment refers to the situation where a person wants to work but cannot find employment in the labour market. One of the major reasons that contribute to unemployment is the large population of India and the limited availability of resources. In this essay on unemployment, we will discuss all these issues responsible for unemployment in India and how we can overcome this problem. Students must go through this unemployment essay to get ideas on how to write an effective essay on the topic related to unemployment. Also, they can practice more CBSE essays on different topics to boost their writing skills.

Unemployment is measured by the unemployment rate, defined as the number of people actively looking for a job as a percentage of the labour force. The unemployment rate for the year 2013-14 in rural India was 4.7%, whereas it was 5.5% for urban India. In the short term, unemployment significantly reduces a person’s income and, in the long term, it reduces their ability to save for retirement and other goals. Unemployment is a loss of valuable productive resources to the economy. The impact of job loss in rural and regional areas flows through the local community, damaging businesses.

Reason for Unemployment

An unemployed person is one who is an active member of the labour force and is seeking work but is unable to find any work for himself. There are multiple reasons behind the unemployment of a person. One of them is the slow economic growth, due to which jobs in adequate numbers are not created. Excessive dependence on agriculture and slow growth of non-farm activities also limit employment generation. Unemployment in urban areas is mainly the result of substantial rural migration to urban areas. This has also resulted in a labour workforce in cities. The lack of technology and proper machinery has also contributed to unemployment.

The present educational system is based on theoretical knowledge instead of practical work. Thus, it lacks the development of aptitude and technical qualifications required for various types of work among job seekers. This has created a mismatch between the need and availability of relevant skills and training. This results in unemployment, especially among the youth and educated people with high degrees and qualifications. Apart from it, the lack of investment and infrastructure has led to inadequate employment opportunities in different sectors.

Steps to Eliminate Unemployment

Various strategies and proposals have been implemented to generate employment. Many Employment programmes and policies have been introduced and undertaken to boost self-employment and help unemployed people engage in public works. The Government of India has taken several policy measures to fight the problem of unemployment. Some of the measures are the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), National Skill Development Mission, Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Regional Rural Banks (RRBs).

Despite the measures taken by the government, India remains a country experiencing severe unemployment problems. It can be resolved by imparting education in such a way that youth get the necessary skills so as to get employment easily. Setting up various vocational training and vocational courses for undergraduate and postgraduate students will help in finding employment for youth. The government needs to emphasise these courses at the primary level and make them a compulsory part of the curriculum to make students proficient in their early stages of life. Career counselling should be provided within schools and colleges so that students can choose a better career option based on their interests and ability. Government should create more job opportunities for the youth and graduates.

India is a fast-growing economy. There is an enormous scope for improvement in the unemployment sector. The various measures and steps taken by the government to increase the employment rate have succeeded to a great extent. The widespread skill development programmes have gained popularity across the nation. With better enforcement of the strategies, the employment level can be significantly improved. Although, we have to go a long way before we can say that all the people in India will get employment.

We hope this essay on unemployment must have helped students in boosting their essay-writing skills. Keep learning and visiting the BYJU’S website for more study material.

Frequently Asked Questions on Unemployment Essay

Is unemployment still an existing problem in india.

Yes, unemployment is still a serious issue in our country. Steps need to be taken by the government and also by the youngsters in India to improve this situation.

Is it necessary for schoolchildren to be informed about unemployment?

Students at this young age should definitely be informed about this topic as it will motivate them to study and aim for higher scores in exams.

What points are to be added to an essay topic on Unemployment?

Add details about different age groups of people suffering from this state of employment. You can focus on the fact that poverty is an indirect reason for unemployment and vice-versa. Then, suggest steps that can be taken to bring about an improvement in education and increase the percentage of literacy.

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Essays About Unemployment: Top 6 Examples and 5 Prompts

Read our guide to see helpful essay examples and prompts to further your understanding and write essays about unemployment.

Unemployment is an unfortunate circumstance many find themselves in; it is a challenge that civilized society faces today. When people are unemployed, they look for jobs but cannot get them. As a result, they are left without a source of income and cannot adequately provide for themselves and their families. This, in turn, can lead to various issues, including depression.

Unemployment is a social, economic, and political issue. It leaves many people in poverty and prevents people from obtaining a source of income. As a result, politicians capture the eyes of voters by promising to lower the unemployment rate to get elected. 

You can get started by reading these essay examples if you are writing essays about unemployment.

6 Examples of Essays About Unemployment

1. unemployment reflection by christopher haynes, 2. what i learned from nearly a year of unemployment by becca slaughter, 3. why aren’t europe and canada in the same boat as u.s. for unemployment by glen hendrix, 4. a global dilemma: how unemployment creates poverty by tess hinteregger, 5. why has covid-19 been especially harmful for working women by nicole bateman and martha ross, 6. youth day and ordeal of nigerian youth by utomi jerome-mario, essay prompts about unemployment, 1. unemployment during the covid-19 pandemic, 2. the connection between unemployment and crime, 3. unemployment: whose fault is it, 4. the causes of unemployment, 5. the effects of unemployment.

“In order to secure work, we must be prepared to change or upgrade our skills and be willing to relocate if necessary. But some people are not interested in retraining to find work in another field, some people do not have the confidence to go out and look for work, and some refuse to accept a job they feel is below their level. Unless people like this change their attitudes, they will not be able to find work.”

Haynes provides two perspectives on unemployment; first, that the government should do more to address it, and second, that if people want work, they must adjust to make a living. He believes that many are unemployed because they are unwilling to change their skillset or relocate to get a job. Therefore, more should be done to reduce unemployment, but it goes both ways; everyone must put in the effort.  

“I remember feeling embarrassed and powerless. I was angry it wasn’t my decision. I was happy I didn’t have to go back there, yet I was stressed about not having anywhere to go. Ultimately, I felt an overwhelming sadness that left me terrified. While I was overflowing with confusing and contradicting emotions, I somehow felt empty.”

In her essay, Slaughter reflects on her unemployed time and how it changed her. Her previous job was long and stressful, but whenever someone would ask her what she did for a living, she was embarrassed and regretful for not being there anymore. In addition to losing her job, she feels like she lost a part of herself at that time. Thankfully, she got a new job, one less taxing than her previous one. 

“You would think paying all that money year after year to a government whose purpose is to “establish justice, insure domestic tranquility, provide for the common defense, promote the general welfare, and secure the blessings of liberty to ourselves and our posterity” would entitle that person to a modicum of “blessings” to insure his “tranquility” and “general welfare” in case of some stupid virus pandemic. It would certainly be the “just” thing to do. And that person’s “posterity” might look a bit less bleak. European governments and Canada did just that. And it’s not even explicitly stated in the preamble to their constitution.”

Hendrix criticizes the United States’ response to the unemployment problem caused by the COVID-19 pandemic, saying that Canada and European nations have done a much better job. He discusses how much better their unemployment benefit system is compared to the U.S. and how it is ironic that the United States, whose constitution says all of these things promoting justice and wellbeing, cannot provide that for its citizens during a global pandemic. 

“While unemployment can create poverty, poverty also reduces the chance of being employed. To ensure that those who are affected by unemployment do not fall into the negative cycle, researchers believe that governments should focus on improving quality education and training all young people so they remain in school.”

Hinteregger, in her essay, explains the link between unemployment and poverty, writing that it leads to the loss of income. People will also have to raise their families in poverty, which perpetuates the cycle of poverty. In addition, the poor may resort to violence to make a living. She points out the sheer irony of this issue, as unemployment causes poverty while poverty may also reduce the chance of being employed. 

“COVID-19 is hard on women because the U.S. economy is hard on women, and this virus excels at taking existing tensions and ratcheting them up. Millions of women were already supporting themselves and their families on meager wages before coronavirus-mitigation lockdowns sent unemployment rates skyrocketing and millions of jobs disappeared. And working mothers were already shouldering the majority of family caregiving responsibilities in the face of a childcare system that is wholly inadequate for a society in which most parents work outside the home.”

Bateman and Ross write about the effects of the COVID-19 pandemic on women. Many women are forced to go through so much to provide for their families; however, the lockdowns led to many of them losing their jobs. The unemployment rate for women rose dramatically, by 12 percent, from February to April of 2020. It has been difficult for them to balance work with taking care of their families, women’s primary role as dictated by society. 

“Youth unemployment is potentially dangerous as it sends a signal to all segments of the Nigerian Society. Here in Nigeria, the rate of youth unemployment is high, even at the period of economic normalcy i.e. the oil boom of the 1970s (6.2 per cent); 1980s (9.8 per cent) and the 1990s (11.5 per cent). Youth unemployment therefore is not a recent phenomenon. But if what happened in the 1980s/90s were a challenge of sorts, what is happening presently, going by the latest report by the National Bureau of Statistics (NBS), is a challenge.”

Jerome-Mario’s essay focuses on several issues affecting the Nigerian youth, including unemployment. The country has a high unemployment rate; over a fourth of the youth population is unemployed. He stresses the importance of the youth using their voice to make a change and to persuade the government to care for its citizens more. 

How COVID-19 contributed to the nursing shortage?

The pandemic and its lockdown policies have undoubtedly caused many people to lose jobs. Look into the impact of COVID-19 on the unemployment rate, particularly during the early months of the pandemic. Which sectors were most affected? Pull data and statistics to show how the public was affected by the covid-19 pandemic in terms of unemployment.

Many say that unemployment leads to higher crime rates. Do you believe this is true? Research how unemployment is linked to crime; examine the effects of unemployment on mental health; and conclude whether this may contribute to the increased likelihood of committing a crime. 

In Haynes’ essay, he claims that employers/the government, and workers are to blame for unemployment. After reading his essay and both arguments, who do you believe is at fault? Explain your response in detail, and make sure to provide a solid base of evidence.

Unemployment has many contributing causes. Assuming a non-pandemic setting, research what causes unemployment and list them down in your essay. Elaborate on each one and, if you can draw connections, explain them as well. 

As a grave issue, unemployment has many severe effects, notably poverty. For your essay, write about the effects of unemployment on a person, both physical and mental. How are they connected? What secondary effects might they produce? For a compelling and argumentative essay, answer these questions using research material and interview data.

For help with this topic, read our guide explaining what is persuasive writing ?If you are interested in learning more, check out our essay writing tips !

essay the problem of unemployment

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Essay on Unemployment: 100 to 300 Words

essay the problem of unemployment

  • Updated on  
  • Mar 30, 2024

Essay on Unemployment

Writing an essay on unemployment provides an opportunity to explore a critical issue affecting societies worldwide. Unemployment, a multifaceted problem, has far-reaching consequences that touch upon various aspects of individuals, families, and nations. In this essay, we will delve into the complexities of unemployment, examine its causes and consequences, discuss government initiatives, and shed light on potential solutions.

Table of Contents

  • 1 What is Unemployment?
  • 2 Essay on Unemployment in 100 words
  • 3 Essay on Unemployment in 200 words
  • 4 Essay on Unemployment in 300 words
  • 5 Tips to Ace in Writing An Essay

Must Read: The Beginner’s Guide to Writing an Essay

What is Unemployment?

Lack of jobs leads to unemployment. It is a very serious economic and social concern that is happening all around the globe leading to many social ills. This issue is a major one and hence many governments are trying to address it. When people of a nation are employed, that leads to the economic and social well-being of that nation. To address it, the education system needs to be modeled differently so as to increase the employability of people. In democracies, political parties use unemployment as a core issue in their election manifestos.

Essay on Unemployment in 100 words

Unemployment refers to the condition when individuals, capable and willing to work, are unable to secure gainful employment. It is a pervasive issue across the globe, with varying degrees of impact on societies. Unemployment results in financial instability, and emotional distress, and hampers individual growth. Governments and organizations must collaborate to create opportunities for employment through skill development and policy implementation.

Essay on Unemployment in 200 words

Unemployment, a pressing concern globally, stems from multiple factors that hinder the workforce’s engagement in productive activities. It affects both developed and developing nations, contributing to economic imbalances and social disparities. The consequences of unemployment include reduced income levels, increased poverty rates, and strained government resources. Moreover, the psychological toll it takes on individuals and families can be severe, leading to stress, depression, and strained relationships.

Essay on Unemployment in 300 words

The intricate web of unemployment is spun from a mix of causes, ranging from economic fluctuations to structural shifts in industries. Cyclical unemployment, driven by economic downturns, and structural unemployment, resulting from a mismatch between skills and job openings, are widespread forms. Additionally, technological advancements lead to technological unemployment as machines replace human labour.

Unemployment has cascading effects on societies. Diminished purchasing power affects market demand, thereby impacting economic growth. As unemployment rates rise, so does the burden on social welfare programs and the healthcare system. The phenomenon also fuels social unrest and political instability, making it a challenge governments cannot ignore.

Governments worldwide have initiated strategies to tackle unemployment. Skill development programs, vocational training, and entrepreneurship initiatives are designed to equip individuals with market-relevant skills. Furthermore, promoting labour-intensive industries and investing in sectors with growth potential can generate employment opportunities.

In conclusion, unemployment is a complex issue that necessitates a multi-pronged approach. Governments, industries, and individuals must collaborate to alleviate its impact. Effective policy implementation, education reforms, and the cultivation of entrepreneurial spirit can pave the way towards reducing unemployment rates and fostering a more stable and prosperous society.

Tips to Ace in Writing An Essay

Before we dive into the specifics of unemployment, let’s briefly discuss some tips to enhance your essay-writing skills:

  • Understand the Prompt: Ensure a clear understanding of the essay prompt to address all its components effectively.
  • Research Thoroughly: Gather relevant information from credible sources to build a comprehensive and informed essay.
  • Organize Your Thoughts: Create an outline to structure your essay logically, allowing your ideas to flow coherently.
  • Introduction and Conclusion: Craft a compelling introduction to engage your readers, and a succinct conclusion to summarize your key points.
  • Use Clear Language: Express your ideas using clear and concise language, avoiding jargon or overly complex vocabulary.
  • Provide Examples: Illustrate your points with real-life examples to enhance understanding and credibility.
  • Edit and Proofread: Revise your essay for grammar, punctuation, and coherence to ensure a polished final draft.

Also Read: Unemployment v/s Underemployment – What’s Worse?

Related Reads:-     

Unemployment refers to the state in which individuals who are willing and able to work are without gainful employment opportunities. It is a condition where individuals seek jobs but are unable to secure them, leading to financial instability and societal challenges.

Unemployment, as discussed in the essay, is a multifaceted issue encompassing the lack of employment opportunities for willing and capable individuals. It explores various forms of unemployment, its causes, far-reaching consequences on economies and societies, and the role of governments in implementing solutions to mitigate its impact.

Unemployment is the term used to describe the situation where individuals of working age are actively seeking employment but are unable to find suitable job opportunities. It signifies a gap between the available workforce and available jobs, often leading to economic and social challenges within a society.

Unemployment emerges as a prominent thread, influencing economic, social, and psychological realms. As we’ve explored in this essay, comprehending the causes and consequences of unemployment is pivotal in devising solutions. Governments, institutions, and individuals must strive collectively to unravel this issue’s complexities and weave a fabric of employment opportunities, stability, and progress. We hope that this essay blog on Unemployment helps. For more amazing daily reads related to essay writing , stay tuned with Leverage Edu .

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Unemployment Essay for Students and Children

500+ words essay on unemployment.

Unemployment is a very serious issue not only in India but in the whole world. There are hundreds and thousands of people out there who do not have employment . Besides, the problems of unemployment are very severe in India because of the growing population and demand for jobs. Moreover, if we neglect this problem then it will be going to become the reason for the doom of the nation.

Unemployment Essay

What is Unemployment?

Unemployment refers to a situation in which a skilled and talented people wanted to do a job. But cannot find a proper job due to several reasons.

Types of Unemployment

Now we know what is unemployment but unemployment does not only mean that the person does not have a job. Likewise, unemployment also includes people working in areas out of their expertise.

The various types of unemployment include disguised unemployment, seasonal unemployment, open unemployment, technological unemployment, structural unemployment. Besides, some other unemployment is cyclic unemployment, educated unemployment, underemployment, frictional unemployment, chronic unemployment, and casual unemployment.

Above all, seasonal unemployment, under unemployment, and disguised unemployment are the most common unemployment that is found in India.

Reasons for Unemployment

In a country like India, there is much reason for a large section of the population for being unemployed. Some of these factors are population growth, slow economic growth , seasonal occupation, slow growth of the economic sector, and fall in the cottage industry.

Moreover, these are the major reason for unemployment in India. Also, the situation has become so drastic that highly educated people are ready to do the job of a sweeper. Besides, the government is not doing his work seriously.

Apart from all these, a large portion of the population is engaged in the agricultural sector and the sector only provides employment in harvest or plantation time.

In addition, the biggest reason of unemployment in India is its vast population which demands a large number of jobs every year which the government and authorities are unable to provide.

Consequences of Unemployment

If things will go on like the current scenario then unemployment will become a major issue. Apart from this, the following things happen in an economy which is an increase in poverty, an increase in crime rate, exploitation of labor, political instability, mental health, and loss of skills. As a result, all this will eventually lead to the demise of the nation.

Get the huge list of more than 500 Essay Topics and Ideas

Initiative by Government

The government has taken the problem very seriously and have taken measures to slowly reduce unemployment. Some of these schemes includes IRDP (Integrated Rural Development Programme), DPAP (Drought Prone Area Programme), Jawahar Rozgar Yojana, Employment Assurance Scheme, NRY (Nehru Rozgar Yojana), Training for self-Employment, PMIUPEP (Prime Minister’s Integrated Urban Poverty Eradication Program), employment exchange, Employment Guarantee Scheme, development of organized sector, small and cottage industries, employment in forging countries, and Jawahar Gram Samridhi Yojana and few more.

Besides, these schemes the government also make some rules flexible, so that employment can be created in the private sector also.

To conclude, we can say that the problem of unemployment in India has reached a critical stage. But, now the government and local authorities have taken the problem seriously and working on it to reduce unemployment. Also, to completely solve the issue of unemployment we have to tackle the main issue of unemployment that is the vast population of India.

FAQs about Unemployment

Q.1 Why there is a problem of unemployment in India? A.1 Due to overpopulation and lack of proper skills there is a problem of unemployment in India.

Q.2 Define Disguised unemployment? A.2 Disguised unemployment refers to a form of employment in which more than the required numbers of people work in industry or factory. And removing some employee will not affect productivity.

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Unemployment Essay Writing Guide

Academic writing

Essay paper writing

essay the problem of unemployment

Employment is one of the major forces that bring on the economic growth of each country. In addition, unemployment rates can show how economic state of a country changes with time. That is why, it is crucially important to study the causes and effects of unemployment on the economy, social issues, and the life of every individual. Every student can do that by working on a research paper or essay about unemployment.

Luckily, you have come across this article, in which we collected the tips and ideas on how to write the best essay or research paper on unemployment. Stay tuned and read on to know all the intricacies of writing the best academic paper on this topic from scratch, even if you know little or nothing in this field. 

Purpose of writing an unemployment research paper

Let’s start with a discussion on how to write a research paper. Conducting unemployment research, you are encouraged to explore and identify issues that arise when willing workers can’t find a well-paid job or lose jobs as a result of their employers’ inability to maintain the growing rate of production.

Of course, this process affects the economy in general as well as the lives of each and every one of us. Having said that, when you look at this problem analytically and study it from different points of view, using recent data, it allows you to either find solutions to it or encourage other students, activists, or even scholars to further this research and propose their solutions.

unemployment-essay-writing-guide

Unemployment research paper topics

Here are some interesting research topics on unemployment for your consideration: 

  • Karl Marx’s theory of unemployment
  • To what extent can automation be helpful or harmful in the workforce?
  • What are the long-term consequences of unemployment?
  • What is a link between inflation and unemployment?
  • Why is unemployment particularly bad for women?
  • How does the unemployment rate affect the phycological state of people?
  • Unemployment during the Big Depression
  • Unemployment rate during COVID-19 pandemics
  • Automation of labor and unemployment
  • The effects of unemployment on students
  • The unemployment rate in the country of choice
  • Which population is the most vulnerable to unemployment?
  • The link between unemployment and crime rate
  • Ways of reducing unemployment

Unemployment research questions

When you have chosen the topic, it is important to formulate a few unemployment research questions and choose one or a few that you are going to focus on in your work. If your topic is broad, narrow it down to something more specific that you would be able to cover within the given word count. Make sure it is not too narrow to be researchable but specific enough for you to understand what kind of information to look for specifically.

The questions you formulate can be focused on the:

  • Comparison between certain aspects of unemployment.
  • Relationships between variables of your choice.
  • Advantages/disadvantages of certain aspects.
  • Causal relationships between specific variables.
  • Factors contributing to the problem or its solution.

There are a lot of ways to formulate a research question for an unemployment paper, and we suggest that you run the question of your choice by your professor before starting to write.

unemployment-essay-writing-guide2

Unemployment research paper outline

While your outline should include as many details as possible, the main sections it will cover are:

  • Introduction
  • Introductory phrase
  • Background information
  • Statement of hypothesis/thesis statement
  • Body sections:
  • Literature review
  • Methodology
  • Restated hypothesis/thesis
  • Main points of research.
  • Further application/Significance of research.

Tips for writing an essay on unemployment

Writing an academic essay on unemployment might appear like quite a difficult task. In order to make your life easier, we have decided to provide with the best writing tips:

  • Choose the topic which you are genuinely interested in. This way, the writing process will be exciting and productive.
  • Make an outline. This is an essential part of employment essay writing, which helps you to keep your ideas in order and write a well-structured text.
  • Write the first draft. It will help you understand how to present your arguments and evidence as well as frame your essay.
  • Look for well-written examples. There are a lot of sample essays on unemployment on the Web. Therefore, if you are not sure what to focus yours on or how to put your ideas on paper, reading a few examples might help.
  • Proofread your essay. It’s a good idea to revise your paper the next day after you finish writing it. This way, you will notice more grammatical errors and common structural and stylistic mistakes.

Topics for writing an essay on unemployment

  • Essay on educated unemployment
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  • Essay on unemployment and underemployment after wars
  • Essay on effects of unemployment (psychological, sociological, financial, etc.)
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  • Cause and effect of unemployment essay: is there a link between low quality education and unemployment?
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unemployment-essay-writing-guide3

Unemployment essay outline

Whether you are writing a one-page essay on unemployment or a longer well-researched one at the end of the semester, making an outline is an important step you should never skip. Just like with a research paper, an unemployment essay outline also has a specific structure:

  • Unemployment essay introduction. For starters, you need to provide readers with background on the topic and some justifications as to why you have chosen it. At the end of the intro, present your thesis statement with the main points that you will be discussing in more detail further.
  • Body paragraphs. The main part is the most extended and informative section of the whole essay. It usually consists of 3-5 paragraphs (however, there can be more or less, depending on the specific requirements). Each paragraph has to include the argument connected with your thesis statement, which is reinforced with evidence and examples. Make sure that your body paragraphs are logically interconnected. In this case, transition words will be of great help.
  • Conclusion for an essay on unemployment. At the final stage, here comes the time to briefly remind the readers about all the arguments discussed throughout the essay and the thesis statement that you have put forward in the intro. Don’t make new points in a conclusion for an unemployment essay. This is the part where you reflect on what was written without adding factual or statistical info to continue the discussion. In the final sentences of the unemployment essay conclusion, try coming up with a catchy phrase to wrap up everything that you have showcased before effectively and to encourage your readers for further reflections. 

Statistics for your essay on unemployment

We have collected some interesting and somehow shocking statistics, which you can use in your unemployment essay or research paper:

  • Developed countries often cannot offer permanent positions for an excessive number of college graduates, both local residents and international students. This problem creates enormous competition for permanent positions in their chosen fields of study. One great example of such a situation is the US economic recession of 2007-2008 when the employment rate of candidates with bachelor's degrees suddenly dropped to as low as 9%.
  • One of the recent American surveys showed that some of the highest unemployment rates were among Philosophy (6.2%) as well as the English Language (6.4%) and Mass Media (7.4%) graduates. On the other hand, the lowest unemployment rates were fixed in the fields of Industrial Engineering (1.7%) and Medical Technicians (0.9%).
  • Youth are approximately three times more likely to be unemployed than adults (2.7).
  • Among all developing regions, East Asia has the largest unemployment rate.
  • The number of unemployed workers in the world’s developing economies is roughly the same as the population of Bangladesh (156.6 million), the world’s eighth-most populous country.
  • Despite COVID-19 pandemics, the US unemployment rate has fallen to 7.9% (from 8.4%). The most prosperous are the restaurant, retail, and healthcare sectors.

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Essay on Unemployment

Here we have shared the Essay on Unemployment in detail so you can use it in your exam or assignment of 150, 300, 500, or 1000 words.

You can use this Essay on Unemployment in any assignment or project whether you are in school (class 10th or 12th), college, or preparing for answer writing in competitive exams. 

Topics covered in this article.

Essay on Unemployment in 150-250 words

Essay on unemployment in 300-500 words, essay on unemployment in 500-1000 words.

Unemployment is a pressing issue that affects individuals and societies globally. It refers to the state of being without a job or a source of income despite actively seeking employment. Unemployment poses significant challenges, both economic and social, for individuals and communities.

The consequences of unemployment are far-reaching. Financial instability decreased living standards, and a loss of self-esteem and confidence are common outcomes. Individuals may face difficulties in meeting their basic needs, providing for their families, and planning for the future. Moreover, unemployment can lead to social unrest, increased crime rates, and a strain on public resources.

Addressing unemployment requires a multifaceted approach. It involves creating favorable economic conditions, promoting job growth through investment and entrepreneurship, and providing individuals with the necessary skills and training for employment opportunities. Furthermore, social safety nets, such as unemployment benefits and job placement services, play a crucial role in supporting those who are unemployed.

Efforts to reduce unemployment should also focus on addressing structural issues in the labor market, promoting fair employment practices, and encouraging inclusive growth. Additionally, fostering a supportive environment for innovation, research, and development can stimulate job creation and economic prosperity.

In conclusion, unemployment is a complex issue with wide-ranging implications for individuals and societies. It demands comprehensive strategies that encompass economic policies, skill development, and social support systems. By addressing unemployment effectively, we can strive towards a society where individuals have access to fulfilling work opportunities and can contribute to the overall well-being and prosperity of their communities.

Title: Unemployment – The Economic and Social Challenge

Introduction :

Unemployment is a pressing issue that affects individuals, families, and societies worldwide. It refers to the state of being without a job or a viable source of income despite actively seeking employment. High levels of unemployment have significant economic and social consequences, making it a critical challenge to address.

Causes of Unemployment

Unemployment can stem from various factors. Economic downturns and recessions often result in job losses as businesses struggle to sustain their operations. Technological advancements and automation have also led to job displacement, particularly in industries that rely heavily on manual labor. Globalization and outsourcing practices have contributed to the relocation of jobs to countries with lower labor costs, creating unemployment in certain regions.

Impact of Unemployment

Unemployment has far-reaching implications. Financial instability resulting from joblessness can lead to increased poverty rates, limited access to healthcare, and housing insecurity. It also strains social cohesion, as unemployed individuals may experience psychological distress, low self-esteem, and a loss of purpose. Moreover, long-term unemployment can lead to skills deterioration and a loss of work experience, making it increasingly difficult for individuals to re-enter the labor market.

Addressing Unemployment

Addressing unemployment requires a multi-faceted approach:

Economic Policies: Governments should implement policies that promote economic growth, investment, and job creation. This includes fostering a business-friendly environment, reducing bureaucratic barriers, and providing incentives for entrepreneurship and innovation. Additionally, targeted industry development strategies can identify sectors with growth potential and encourage job creation in those areas.

Education and Skills Development: Investing in education and skills development is crucial to equip individuals with the necessary competencies for available job opportunities. Collaboration between educational institutions, employers, and government agencies can help bridge the skills gap and ensure that individuals are prepared for the changing demands of the labor market. Upskilling and reskilling programs can help unemployed individuals acquire new skills and improve their employability.

Job Creation Initiatives: Governments should prioritize job creation initiatives, particularly in sectors with high growth potential. This can be achieved through infrastructure projects, green technology investments, and support for small and medium-sized enterprises. Public-private partnerships can also play a significant role in stimulating job creation and economic development.

Social Safety Nets: Establishing robust social safety nets is crucial to support those facing unemployment. Unemployment benefits, healthcare coverage, and access to retraining programs can help individuals meet their basic needs and regain economic stability while actively seeking employment. Such support systems alleviate the financial burden and provide a safety net during challenging times.

Conclusion :

Unemployment is a complex and persistent socioeconomic challenge that demands comprehensive solutions. By implementing effective economic policies, investing in education and skills development, promoting job creation, and providing social safety nets, societies can mitigate the impacts of unemployment and strive toward a more equitable and prosperous future. It is essential to address this issue with urgency, as reducing unemployment rates not only improves individual well-being but also fosters economic growth and social cohesion.

Title: Unemployment – A Dual Crisis of Economic Stability and Human Dignity

Unemployment is a complex and pervasive issue that affects individuals, families, and societies at large. It refers to the state of being without a job or a viable source of income despite actively seeking employment. High levels of unemployment have severe economic and social consequences, making it a pressing challenge that demands effective solutions and interventions. This essay aims to provide a comprehensive analysis of the causes, impacts, and potential remedies for unemployment, recognizing its multifaceted nature and the need for a holistic approach.

I. Understanding Unemployment

Unemployment can be classified into various types based on its causes and duration. Structural unemployment arises from shifts in the economy, such as technological advancements or changes in market demand, rendering certain jobs obsolete. Cyclical unemployment, on the other hand, is caused by economic downturns and fluctuations in business cycles. Frictional unemployment occurs when individuals are between jobs or in transition, while seasonal unemployment is linked to seasonal variations in certain industries.

II. Economic Implications

Unemployment poses significant challenges to the economy at both micro and macro levels. At an individual level, it leads to a loss of income and financial instability, making it difficult for individuals to meet their basic needs, contribute to the economy, and plan for the future. Moreover, the lack of economic opportunities leads to a decrease in consumer spending, which negatively impacts businesses and reduces their profitability. This, in turn, can trigger downsizing, closures, and a negative cycle of job losses, further exacerbating the unemployment crisis.

On a macroeconomic scale, high unemployment rates hinder economic growth and development. The decline in consumer spending decreases demand for goods and services, creating a ripple effect throughout the economy. Governments also face challenges in generating tax revenues, leading to reduced public investment in infrastructure, education, and healthcare. Additionally, increased government spending on unemployment benefits and social support places a strain on public finances, potentially leading to higher budget deficits or cuts in other areas.

III. Social Consequences

Unemployment not only impacts individuals’ economic well-being but also has profound social implications. Financial instability resulting from joblessness can lead to increased poverty levels, housing insecurity, and limited access to healthcare, further exacerbating social inequalities. The psychological toll of unemployment cannot be overlooked, as individuals may experience feelings of anxiety, depression, low self-esteem, and a loss of purpose. This can strain relationships, lead to social isolation, and create a sense of hopelessness among the unemployed.

Furthermore, long-term unemployment can result in skills deterioration and a loss of work experience, making it increasingly difficult for individuals to re-enter the labor market. This perpetuates a cycle of unemployment and hinders upward social mobility, reinforcing existing inequalities and social divisions.

IV. Causes of Unemployment

Unemployment is influenced by a combination of economic, structural, and policy-related factors. Economic downturns, such as recessions or financial crises, can lead to widespread job losses as businesses struggle to stay afloat. Technological advancements and automation also contribute to job displacement, particularly in industries that rely heavily on manual labor. Globalization and outsourcing practices can result in the relocation of jobs to countries with lower labor costs, further aggravating unemployment in certain regions.

Inadequate education and skills training also contribute to unemployment. Rapid changes in the labor market demand individuals with up-to-date skills and knowledge. Failure to adapt and provide relevant training can leave individuals ill-equipped to secure employment in sectors with higher demand.

V. Addressing Unemployment

Effectively addressing unemployment requires a comprehensive approach that combines economic policies, education and skills development, job creation initiatives, and social safety nets. Some potential strategies include:

  • Economic Policies
  • Education and Skills Development
  • Job Creation and Support
  • Social Safety Nets

Economic Policies:

Governments should implement policies that foster a conducive business environment, promote investment, and stimulate job creation. This may involve reducing bureaucratic barriers, providing incentives for entrepreneurship and innovation, and investing in infrastructure projects to generate employment opportunities.

Education and Skills Development:

A focus on education and skills training is crucial to equip individuals with the necessary competencies for available job opportunities. Collaboration between educational institutions, employers, and government agencies can help bridge the skills gap and align education with labor market needs. Upskilling and reskilling programs should be promoted to ensure individuals can adapt to evolving job requirements.

Job Creation and Support:

Governments should prioritize job creation initiatives in sectors with growth potential, such as renewable energy, healthcare, technology, and infrastructure development. This can be achieved through investment incentives, public-private partnerships, and targeted industry development strategies. Additionally, providing job placement services, vocational training, and financial assistance to unemployed individuals can enhance their employability and facilitate their transition back into the workforce.

Social Safety Nets:

Establishing robust social safety nets is essential to provide temporary relief and assistance to those facing job loss. Unemployment benefits, healthcare coverage, and support for retraining can help individuals meet their basic needs and regain economic stability while actively seeking employment. Such measures help alleviate the negative impacts of unemployment and support individuals during periods of transition.

Unemployment is a dual crisis of economic stability and human dignity, impacting individuals and societies on multiple levels. The economic and social consequences of unemployment demand comprehensive and coordinated efforts to address its causes and mitigate its impacts. By implementing effective economic policies, investing in education and skills development, promoting job creation, and providing robust social safety nets, societies can strive towards reducing unemployment rates and creating a more inclusive and prosperous future for all.

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Essay on Unemployment

The three basic needs of human beings are - food, home and clothing. All these needs can be properly fulfilled only if a person has money. And to earn this money, the person must be employed, that is, he or she must have a paid occupation. However, there are many people in the world and our country too who have failed to secure a job. As a result, they have an insignificant source of income. This state of joblessness is called unemployment.

Why Unemployment is a Serious Issue?

To live a dignified life, people need to earn money and fulfil their basic needs. Unemployment snatches this right from them and their standard of life gets degraded. 

The lack of money due to unemployment leads to the lack of nutritious food. The health of the unemployed is bound to deteriorate. The children of unemployed people cannot get the proper diet. Hence, they suffer from various illnesses. Their quality of life reduces drastically over time.

An unemployed parent cannot give proper education to his child. As a result, the child too will not be able to get a good job once he grows up. Thus, unemployment breeds unemployment.

Unemployment and Social Instability

An unemployed person is open to doing socially unacceptable work to get money. Thus, very often in a society where there are a huge number of unemployed people, there will be a great proliferation of thieves, snatchers, bank-robbers and much more serious anti-social elements. 

Covid-19 & Unemployment in India and the World

In March 2020, India entered into lockdown to stop the spread of Coronavirus. While the lockdown was effective, hundreds of people got jobless because of the prolonged shutdown of the offices. The unemployment rate has climbed up to 27.1% in April. Sure, once the offices are opened, this rate will come down. However, this grim scenario will haunt us for at least one year.

The situation in other countries is the same. 30 million people in the US have filed unemployment claims. The unemployment rate, there, is 14.7%. In the UK the number of unemployment claims has shot up by 70%.

How Can We Come Out of The Muck?

1. Self-Dependence

As the Prime Minister of India proclaimed, the Indians need to be self-dependent. We need more vocational training. Gone are the days when being employed meant being an engineer or a doctor. A farmer is an employed person. He produces his food and that of the others. There is no shame in being a farmer. We have to stop depending on foreign countries for IT work - Let us open more startups. Why do we depend on China for Diwali firecrackers or Holi colors - We can make them ourselves. Self-help is the best help.

2. Shifting The Manufacturing To India

To create more jobs, India needs to make more manufacturing hubs in the country. Let us not just assemble the Smartphone parts, let us scour the mineral-rich country and take out silicon to make circuit boards.

3. Educating The Women 

There is a real connection between the lack of education and unemployment. To educate the children of the country, we first need to educate the women of the country. Only then can the children be educated properly.

4. Stopping Politics Based On Religion And Region

Stopping petty politics is the need of the hour. The politicians need to work in a concerted way to make Indians employed.

As Charlie Chaplin said, there is no glory in poverty. Let us not pride ourselves on being compromising. Let us remain hungry for a better life. Let’s get employed.

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FAQs on Unemployment Essay

1. What are the types of unemployment prevalent in the world?

Unemployment is a serious issue across the globe and is of four major different types, that is, demand deficient unemployment, frictional unemployment, structural unemployment, and voluntary unemployment.

Demand deficient unemployment: it is the biggest form of unemployment occurring generally during a recession. A recession is a period when the demand for a certain product in the market decreases, and in reaction to that company reduces its production and cuts down on the workforce.

Frictional unemployment: it is a stage of unemployment where the worker by his own will is searching for a job that is more suitable for his/ her skills and also pays him equal to or more than what he was getting in his previous workplace.

Structural unemployment: In this particular unemployment, geographical location acts as a barrier or the skill set of a worker is not following the skills desired by the jobs available in the market.

Voluntary unemployment: this type of unemployment is by the will of the worker because the worker leaves his/ her job on his own because the pay he is getting is less than his cost of living.

2. What are the causes of unemployment?

Unemployment is a global concern across the globe. Unemployment can be due to any possible reason. Unemployment doesn’t need to be from the employer side only, it can even be from the demand side, that is the demand of the product is low, therefore production is reduced due to which the workforce is also cut down. Unemployment is also from the worker side, that is, the current job doesn't pay him well according to his skill set or the current job is not much of his desired skills. In both these cases, the worker himself leaves his job.

3. What is meant by long-term unemployment and short-term unemployment?

Long-term unemployment refers to the phase of unemployment that lasts for more than 27 weeks, that is 189 days. Short-term unemployment refers to a state where the individual is not unemployed for more than a month and gets a new job very quickly. Long-term unemployment is very dangerous as compared to short-term unemployment and has adverse effects on the economic condition of an individual because of obvious reasons. The main effects of long-term unemployment on an employee are:

There is a significant decrease in the net worth reported in almost 56% of the long-term unemployment cases.

Unemployment not only affects the financial status but family relations as well, 46% of the cases of unemployment experienced strained family relationships.

Unemployment also poses an adverse effect on the career growth of individuals. Almost 43% of the long-term unemployed have observed a drastic effect on their ability to achieve their desired career goals.

Apart from financial and effect on career, long-term unemployment also affects the self-respect of individuals that was reported among approximately 38% of cases of long-term unemployment. Out of these 38% cases, 24% cases required professional help to come back to normal.

4. What are the major reasons that cause unemployment?

Unemployment can persist in a country due to many different reasons. 

One of the main reasons for unemployment is population growth because an exponential increase in population has given rise to higher rates of unemployment. After all, the number of people looking for a job is increasing but the jobs available in the market are constant or are not increasing significantly as compared to the rate of population growth. 

Due to the rapid growth of technology on a global scale, most of the work that was done through human interference is now carried out through machines and technologies. The advancement in technology has completely replaced the unskilled and low-skilled labourers in factories and companies. All factories now prefer technology over labour simply because technologies are more accurate and fast. 

Lack of education and desired skills is another major cause of unemployment. Currently, with technologies driving the world, the demand for skilled and educated workers has increased and the employment opportunities for people without adequate education have decreased, raising the unemployment rate of the country. 

Also, the rising pay scale sometimes makes it difficult for companies to hire employees and pay them the optimum salary.

5. What are the initiatives taken by the government to deal with increasing rates of unemployment?

The government has taken the issue of unemployment very seriously. There are various programs, schemes, and initiatives taken by the government to deal with this situation efficiently. Some of the schemes started by the government to reduce unemployment are Integrated Rural Development Program (IRDP), Drought Prone Area Program (DPAP), Employment Assurance Scheme, Jawahar Rozgar Yojna, Nehru Rozgar Yojna (NRY), Prime Minister’s Integrated Urban Poverty Eradication Program (PMIUPEP), Jawahar Gram Samridhi Yojna, employment guarantee scheme, employment exchange, promoting small and cottage industries and development of the organized sector. There are many more schemes launched by the government apart from the ones mentioned here. Also, apart from schemes, the government has launched training for self-employment and skill India program, to help individuals learn skills which can help them in finding a satisfactory job for themselves and their families.

Report | Wages, Incomes, and Wealth

Education is Not the Cure for High Unemployment or for Income Inequality

Report • By Lawrence Mishel • January 12, 2011

Briefing Paper #286

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With signs pointing to persistent high unemployment and a recovery even weaker than those of the early 1990s and 2000s, it is becoming common to hear in the media and among some policy makers the claim that lingering unemployment is not cyclical but “structural.” In this story, the jobs problem is not a lack of demand for workers but rather a mismatch between workers’ skills and employers’ needs. Another version of the skills mismatch is also being told about the future: we face an impending skills shortage, particularly a shortfall of college graduates, after the economy returns to full employment.

The common aspect of each of these claims about structural problems is that education is the solution, the only solution. In other words, delivering the appropriate education and training to workers becomes the primary if not sole policy challenge if we hope to restore full employment in the short and medium term and if we expect to prevent a (further) loss of competitiveness and a further rise in wage and income inequality in the longer term.

There are ample reasons to be skeptical of both claims:

  • The number of job openings in the current recession has been far too few to accommodate those looking for work, and the shortfall in job openings is pervasive across sectors, not just the hard-hit construction industry, which tends to be the focus of skills-mismatch claims.
  • There is no one education group—particularly not the least educated, as the structural argument would suggest—fueling the rise of long-term unemployment in this recession. If there has been some transformation of the workplace leaving millions of workers inadequate for the currently available jobs, then it was not based on a major educational upscaling of jobs.
  • The challenge the nation faces as high unemployment persists is not better education and training for those currently unemployed. The problem is a lack of jobs.
  • The huge increase in wage and income inequality experienced over the last 30 years is not a reflection of a shortfall in the skills and education of the workforce. Rather, workers face a wage deficit, not a skills deficit. It is hard to find some ever-increasing need for college graduates that is going unmet: college graduates have not seen their real wage rise in 10 years, and the pay gap with high school graduates has not increased in that time period. Moreover, even before the recession college students and graduates were working as free interns, a phenomenon we would not observe if college graduates were in such demand.

In the following I do not present definitive evidence, but I hope to be persuasive enough for readers to demand more evidence before accepting either of these claims of immediate structural employment problems or long-term skills deficits. The first section draws heavily on recent work on structural unemployment in the current recession (see Mishel et al. 2010), and the second draws heavily on the wages chapter of the most recent version of The State of Working America (Mishel et al. 2009).

I. Is current unemployment primarily structural in nature?

The context.

Unemployment has remained at 9.5% or above  since mid-2009 and may remain that high or inch even higher through 2011. The predominant narrative to describe this situation has been that the bursting of the housing and stock bubbles and the financial crisis led to a severe cutback in household consumption and business investment, causing severe job losses. The policy conclusion drawn from this narrative is that we need faster growth to increase the demand for workers and reduce unemployment.

A competing and, in my view, misguided narrative has also been put forth that a large share of current high unemployment is structural, meaning that those who are unemployed are not well suited to the jobs becoming available. This would be, for instance, because their skills are inadequate, have deteriorated, or are not applicable to the industries that are expanding, or because the unemployed simply do not live where the jobs are. Some make claims about structural unemployment because certain aggregate relationships, such as that between job openings and unemployment, do not appear to be following historical patterns, thereby suggesting a possible skills mismatch. Others have postulated that employers have substantially revamped their production processes in this downturn, thereby eliminating the need for many of the types of workers who are currently unemployed. Still others note that the housing bubble led to a bloated construction sector, and many of those jobs will never come back; displaced construction workers must switch to new jobs for which they may not be qualified. The policy implications of a finding that high unemployment is primarily structural are that: (1) it would be foolhardy to use further demand management (fiscal stimulus, either tax cuts or increased spending, or monetary policy) to lower unemployment, and (2) the appropriate policy is to offer education and training to the unemployed to help them make a transition to new occupations and sectors.

Yet there has been little evidence offered to support the claim of extensive structural unemployment, and we find that the pattern of employer behavior regarding job openings, layoffs, and hires does not lend it much credence. This matters quite a bit for guiding policy.

Lest I be accused of critiquing a straw man, note the recent statement of the Minneapolis Federal Reserve Bank president, Narayana Kocherlakota (2010):

What does this change in the relationship between job openings and unemployment connote? In a word, mismatch. Firms have jobs, but can’t find appropriate workers. The workers want to work, but can’t find appropriate jobs. There are many possible sources of mismatch—geography, skills, demography—and they are probably all at work. Whatever the source, though, it is hard to see how the Fed can do much to cure this problem. Monetary stimulus has provided conditions so that manufacturing plants want to hire new workers. But the Fed does not have a means to transform construction workers into manufacturing workers. Of course, the key question is: How much of the current unemployment rate is really due to mismatch, as opposed to conditions that the Fed can readily ameliorate? The answer seems to be a lot. Most of the existing unemployment represents mismatch that is not readily amenable to monetary policy.

The competing explanation, as mentioned above, is the one I find most plausible: the economy is operating far below its potential output because of a shortfall in demand caused by an extreme loss of financial and housing wealth that caused consumption to fall; thus, there are simply not enough jobs to go around. Evidence for this explanation focuses on such indicators as low operating capacity in manufacturing, which was 71.6% in June 2010, down from 79.1% in December 2007. Vacancies in commercial offices (now at 17.4%) are further indication of excess capacity. The bottom line is that total demand in the second quarter of 2010 was still below its pre-recession level. In fact, total output, as measured by gross domestic product, was 1.3% below its pre-recession level. Of course, one would expect demand and output to have grown substantially over the two-and-a-half years since the official start of the recession and the ensuing recovery. The Congressional Budget Office conservatively puts the “output gap,” the difference between potential and actual output, at 6.4% in the second quarter. 1 I think the output gap is larger, probably about 9.0% (derived by multiplying 4.5% excess unemployment by 2, from the usual Okun gap formula).

In my view, the pervasiveness of (1) lost employment and output across sectors and (2) high unemployment across types of workers by state, education, age, and occupation suggests an aggregate or macroeconomic explanation rather than one rooted in a few sectors or locations or because some workers lack skills.

Skepticism appropriate

The claim that current unemployment is primarily structural should require much more evidence than has been offered because common sense would deny such an explanation. The structural unemployment story presumes that millions of workers are now inadequately prepared for available jobs even though they were fruitfully employed just a few months or years ago. The argument raises a few key questions.

Has there been a major shift in productivity or technology investment?

What footprints would lead us to believe that the economy transformed itself from the end of 2007 to the beginning of 2010, leaving millions of workers inadequate? Productivity did grow a pretty spectacular 6.3% from early 2009 to early 2010, but that was the extent of productivity growth since the recession started in late 2007. 2 Net investment in business equipment and software in 2009 (the latest data) was actually negative, the first time this occurred since World War II. 3 Thus, the alleged structural transformation of production processes that left 4-5% of the labor force inadequate for the available jobs was clearly not associated with new equipment or new technological processes (requiring software), leaving us doubtful it happened at all.

Have the jobs moved around? 

Is the problem just a need for greater mobility, for the unemployed to move to where jobs are more plentiful? Well, where would they go? There are 11 states with a total adult population of about 17 million where the unemployment rate in June was less than 7.0%. 4 There are not enough jobs in those states to matter much, and if the unemployed moved to those states they would nearly double the labor force there.

Is unemployment unusually high compared to job openings?

The “Beveridge curve” describes the historical relationship between unemployment and job openings, and allows one to predict how high or low the unemployment rate should be given a certain number of job openings. There has been much attention to the mid-July blog post by David Altig (2010a), senior vice president and research director at the Atlanta Federal Reserve Bank, who used such an analysis to suggest that almost a third of the unemployed, 4.6 million workers, are structurally unemployed. His claim was based solely on a simple analysis of job openings and unemployment since 2000 that encompassed the experiences of just two recessions. Less noticed is that Altig (2010b) retreated from this claim just a month later, following an analysis by Cleveland Federal Reserve economists Murat Tasci and John Lindner (Tasci and Lindner 2010). Those authors,  using data back to 1951, showed that unemployment higher than what the Beveridge curve would suggest is not “anomalous”: rather, it happened in the initial recoveries following the deep recessions in the 1970s and 1980s as well.

Looking for evidence  on the employer side

One of the curious aspects of this developing structural unemployment storyline is how hard it is to find any research tying this hypothesis to actual detailed trends in employment, unemployment, or output data. This section explores patterns on the demand side, such as employer job openings, layoffs, and hiring, to see if they correspond to a structural unemployment story.

The number of job openings

The job seekers ratio, which is the number of unemployed workers per job opening, provides ample evidence of a demand side problem. Simply put, the number of job openings has been far too few to accommodate those looking for work.

As Figure A shows, the ratio of unemployed to job openings surpassed six in the summer of 2009 but has dropped to the low five range more recently (once jobs to conduct the 2010 Census were filled). Even if the unemployed filled every job opening there would still remain many unemployed workers, an indication of too few job openings. 5 The ratio of the unemployed to job openings in recent months has been nearly double that attained at the worst points of the early 2000s recession, a ratio of 2.8, which is not surprising since total job openings in the last half of 2009 were 25% below those in mid-2003.

Figure A

We can examine this phenomenon further by comparing the cumulative number of job openings in the first 12 months of the last recovery to the first 12 months of this one.

Figure B shows that the cumulative job openings in this recovery’s first year were about 32.0 million, roughly 10.0 million fewer than the cumulative openings in the early 2000s recovery. Recall that the recovery of the early 2000s is known as a “jobless recovery,” as the economy shed an additional 600,000 jobs after the recession had ended. Yet the current recovery has generated far fewer job openings than that pitifully weak recovery.

Figure B

Job openings by industrial sector. A shortfall in job openings is clear, yet a concentration of this shortfall in a few specific industries such as construction would provide evidence of a structural shift.

Figure C shows the ratio in each sector of the cumulative job openings in the current recovery to those in the early 2000s recovery. This measure shows how far short this recovery’s job openings are relative to those of the earlier recovery for each sector. The shortfall in job openings is pervasive, occurring in every sector (except mining). Recent openings averaged 72% of those in the earlier recovery. Recent construction job openings were indeed just 58% of those in the earlier recovery, but the shortfall in job openings was also severe in labor-intensive service industries such as hospitality, entertainment, and accommodation. Since the trends are pervasive across all sectors, it is time to stop thinking about unemployment and the failure to generate job openings as a circumstance driven by developments in particular sectors.

Figure C

Table 1 , which shows the job opening data for each sector in both the 2001 and 2007 recoveries, allows an assessment of the scale of the recent openings shortfall by sector. Construction is responsible for 5.7% of the recent shortfall, but that is comparable to that sector’s 5.5% share of employment; in other words, construction has not played any outsized role in the failure for openings to rise as fast now as in the earlier recovery. The shortfall has predominately been driven by private service-sector industries (professional and business services, health, education, entertainment, hospitality, and accommodations), which generated 71% of the openings shortfall despite having just 46% of total employment. In fact, the worst performing industry under this measure was leisure and hospitality, which accounts for 10% of employment but 18% of the job openings shortfall.

Table 1

The number of job losses

Maybe the issue is that we have been seeing more structural changes within industries or shifts across industries that are leading to more layoffs, thereby impeding growth in overall employment. A look at the cumulative layoffs in this recovery compared to the last recovery, as in Figure D , shows that layoffs are not a piece that fills in any puzzle: the cumulative layoffs in each recovery are totally comparable.

Figure D

Filling job openings

Last, we examine whether it is harder to fill job openings, an indication that structural challenges such as having workers with the right skills or in the right locations are evident. The data for the private sector, however, show it is easier to hire people now than in the last recovery or earlier in this recession, at least as reflected in the ratio of hires per job opening.

If it is difficult to hire adequately skilled workers it should take longer to fill vacancies, and the ratio of hires to openings should fall. In fact, as Figure E shows, the opposite has occurred: the ratio has been somewhat higher in this recovery (averaging 1.7 hires per job opening) relative to the earlier recovery (1.5 hires per job opening). 6 Moreover, this ratio has increased since the recession started, which means there is no evidence of a growing structural problem. Remember, too, how these data are timed. “Job openings” is the count of available jobs on the last day of the month. “Hires,” on the other hand, is the sum of all hires completed throughout the month. As long as the number of hires is larger than the number of openings, it is taking less than a month to fill those jobs.

Figure E

Looking for evidence on the employee side

The analysis now turns to an examination of the characteristics of the unemployed, especially the increase in unemployment, to see whether those who are unemployed are not well matched to the available jobs. Since those making the claim that there is severe structural unemployment have not presented any evidence about workers themselves—relying simply on the extent of overall unemployment—it is difficult to identify how to test their claim. However, it seems reasonable to assume that workers who are “inadequate” for current jobs would tend to have less education, be stuck in declining industries, and be older. To gauge whether this is the case the analysis that follows focuses on how the composition of unemployment and long-term unemployment has changed since 2007. That is, the analysis explores who (which type of worker) fueled the rise in unemployment and long-term unemployment.

The construction industry

Much of the intuitive appeal of the structural unemployment claim is that the recession came because of the bursting of the housing bubble and the consequent shrinking of the construction sector. In this view, many unskilled workers who benefited from the expansion of the construction sector have been forced to find new types of work, presumably a difficult transition to make. I will not comment on the notion that construction workers are “unskilled,” which can easily be refuted by an examination of their wages and benefits and the training needed for jobs in this sector: this is plainly a judgment on “skill” set by the fact that workers in this sector do not necessarily need to have a college education or an advanced degree. Rather let us turn to what we know about unemployment in this sector. A minor foray into labor market data suggests that construction does not play the outsized role imagined by the president of the Minnesota Federal Reserve Bank and many other commentators. It is true that construction has lost nearly two million jobs in this downturn, 25% of all private sector jobs lost. But is this what has fueled growing unemployment? The answer is no. In the second quarter of 2010 ( Figure F ) unemployed construction workers made up 12.4 % of the unemployed and 12.5% of the long-term unemployed: this means that unemployed construction workers are not more likely to be long-term unemployed than those displaced from other sectors. Even before the recession, in 2007, unemployed construction workers were 10.6% of all unemployed and 11.0% of the long-term unemployed. This means that the composition of unemployment and long-term unemployment has barely shifted toward construction workers. Just because there was an extreme loss of jobs in construction does not imply that those workers are driving up unemployment. More research is needed to determine what happened to those workers displaced from construction, but it is apparent that many have found jobs in other sectors, and perhaps some of the immigrant workers in this sector have left the country.

Figure F

The composition of unemployment

Table 2 provides a breakdown of unemployment by education level, based on published BLS data for those ages 25 and over (this group has presumably completed its education). The data are presented for the last quarter of the previous recovery to give an indication of the composition of unemployment before the recession. Data are also presented for the most recent quarter (the second quarter of 2010) and for that same quarter in 2009. This allows us to examine the changes over the entire recession and over the last year, a period where the Beveridge curve analyses are said to suggest a growing mismatch between the skills of the unemployed and those needed for job openings. What is most apparent from Table 2, however, is that the composition of unemployment has remained remarkably stable throughout this period. Workers with less education have higher unemployment rates at every point in the business cycle, but the unemployment rate has more than doubled for every education group over the downturn. Unemployment rose for each education group in the last year except the least-educated—those lacking a high school degree—a finding not very supportive of a recent twist against the least-educated workers.

Table 2

The second panel presents the composition of unemployment by education level, and the trends do not support any notion of this recession’s higher unemployment being fueled by those with the least education. The share of the unemployed with bachelor’s degrees or more is the same in the most recent quarter as before the recession. Those with some college have seen their share of unemployment bumped up slightly. These two groups make up the upper 61% of the labor force by education, and their share of unemployment has not fallen. One might even imagine that our expectation is that those with more education saw their share decline in a recession. Further analysis along these lines, looking at earlier recessions, would be useful.

Table 3 provides data on the rise in the unemployment rates by demographic group, including by education, for those ages 16 and over. The table also provides information on the long-term unemployment of each group: the share of the labor force that is long-term unemployed (27 weeks or more) and the share of the unemployed of each group that is unemployed long term. Data are presented for two time periods, the last half of both 2007 and 2009. These data are computed from the microdata and therefore are not seasonally adjusted, and so we make comparisons to similar time periods of the year.

Table 3

Between these two periods the unemployment rate more than doubled, up 4.9 percentage points to 9.5%. As we saw in the previous table, unemployment rose sharply for every education group. With these data we can separately examine those with a bachelor’s degree and those with advanced degrees and see that those with at most a college degrees saw their unemployment rate rise (up 119%) as fast as or faster than those with a high school degree or less. It does appear that older workers saw their unemployment rate rise disproportionately relative to younger workers (those ages 16 to 24), consistent with possible structural unemployment. Along these same lines it is true that the oldest workers had the highest share of long-term unemployed among the unemployed of their group (45.9%).

The biggest strike against the structural unemployment claim is that every education group has a similar share of its unemployment as long-term unemployed. Therefore, it seems that all workers once they are unemployed have a similar probability of being unemployed for at least 27 weeks regardless of their education level. That means that there is no particular education skew fueling the rise of long-term unemployment, just as we saw with overall unemployment in the previous table. If there has been some transformation of the workplace leaving millions of workers inadequate for the currently available jobs, as the structural unemployment claim would venture, then this transformation was definitely not based on a major educational upscaling of jobs, or at least that is what the unemployment data are telling us.

It is also clear that black workers suffer by far the most from long-term unemployment, with 6.7% of the black labor force affected. Blacks have an even larger share of the long-term unemployed than the whole group of those lacking a high school degree, even though the vast majority of the black labor force has a high school degree or further education. This finding, however, sheds no particular insight into the structural unemployment claim.

Conclusion on current structural unemployment

We increasingly hear or read claims that we have a serious structural unemployment problem, even to the extent of claiming that most of the unemployed beyond a normal (full-employment) rate face structural problems in finding work. This argument implies that unemployment difficulties reside in the workers who are unemployed: they either are located in the wrong place or do not have the required skills for the currently available jobs. If this is so, then macroeconomic tools such as fiscal policy (spending or tax cuts) or monetary policy cannot address our unemployment or long-term unemployment situation. But surprisingly, perhaps amazingly, there is no systematic empirical evidence for such assertions. Before policy makers adopt this framework—that much of our unemployment is “structural”—they should require much more evidence than is currently available. This is especially the case because common sense would suggest that the problem faced by the unemployed is a scarcity of job openings, a feature of the labor market facing every group of workers regardless of education, sector, occupation, and location.

II. Is there a looming shortage of college-educated workers?

The second structural issue to examine in the labor market is the claim that the economy faces a looming shortage of college graduates that, if not addressed, will cause flagging competitiveness and further growth in wage and income inequality. A related claim is that the rise in wage inequality over the last 30 years or so can be traced primarily to a technology-driven shift toward a greater need for “more educated” and skilled workers—i.e., college graduates—that was not met by a corresponding increase in the supply of college graduates. This is not necessarily a shortage we face in the next few years, according to some leading economists, but one we will face when the economy returns to full employment.

In response to a question posed by The Economist , “Is America facing an increase in structural unemployment?” MIT economist Daron Acemoglu wrote an article, “Yes, the labour force hasn’t responded to shifting demand for skills” (Acemoglu 2010). He wrote:

U.S. structural unemployment is up. But this is not a recent turn of events. It is the continuation of an ongoing process….U.S. employment and demand for labour have been undergoing profound changes over the last 30 years. While the demand for high skill workers, who can perform complex, often non-production tasks, has increased, manufacturing jobs and other “middling occupations” have been in decline. Also noteworthy is that over the last 10-15 years, many relatively low-skill, low-pay service occupations have been expanding rapidly.

David Autor (2010), another MIT economist and a co-author with Acemoglu of important papers on this topic, recently wrote a paper for the Hamilton Project and the Center for American Progress saying:

Although the U.S. labor market will almost surely rebound from the Great Recession, this paper presents a somewhat disheartening picture of its longer-term evolution. Rising demand for highly educated workers, combined with lagging supply, is contributing to higher levels of earnings inequality. Demand for middle-skill jobs is declining, and consequently, workers that do not obtain postsecondary education face a contracting set of job opportunities.

The policy implications of this impending skills shortage, according to Autor, are that “an increased supply of college graduates should eventually help to drive down the college wage premium and limit the rise in inequality,” and “the United States should foster improvements in K-12 education so that more people will be prepared to go on to higher education.” Moreover, we need “training programs to boost skill levels and earnings opportunities in historically low-skilled service jobs—and more broadly, to offer programs for supporting continual learning, retraining, and mobility for all workers.” In short, the U.S. needs to create many more college graduates and to provide various types of training for those who do not become college graduates.

But the need to vastly boost the total number of college graduates in the future may not be as great as Autor and Acemoglu believe. For instance, the trends in the 2000s indicate that the relative demand for college graduates is growing much more slowly than in prior decades. Plus, the wages for college graduates have been flat for about 10 years and running parallel to those with high school degrees, and they have been growing far more slowly than productivity. The implication of these trends is that a surge of college graduates, whatever the benefits (and there are many), can be expected to drive the college wage down. Wage inequality would diminish, but by pressing college graduate wages down (not just in relative terms), which is not the picture frequently painted of the future.

It is important to note that when we discuss the employment or wages of “college graduates” we refer to those with a four-year degree but no further degree; i.e., we exclude both those with advanced or “professional” degrees and those with associate college degrees or with “some college” but no degree past high school. This definition is important because the trends for the aggregate group of all those with a college degree, including those with advanced degrees, is always far more favorable than trends among those with at most a bachelor’s degree. For instance, in 2009 the unemployment rate among all college graduates was 4.6%, but those with at most a bachelor’s degree had a rate of 5.2% and those with advanced degrees had a rate of 3.4%. There are also very different wage trends among those with only bachelor’s degrees (not so good) and those with advanced degrees (much better). And so it is not surprising that analyses which look at the aggregate college group would recommend a vast increase in the supply of college graduates, but in reality what the trends mean is that we need more people with advanced degrees, not just college degrees. It is important to distinguish these groups so we are clear about the findings and implications.

Remarkably, few people seem to know how the workforce breaks down across these categories, and so we have illustrated them in Table 4 . Note that about 21% of those employed have at most a bachelor’s degree, and another 10% have an advanced degree. Only 6.1% of non-immigrant employed workers lack a high school degree (or do not have a GED). A small group, roughly 10%, have an associate’s college degree, but an even larger group, about 20%, has attended college but has no degree past high school; this group is labeled “some college.”

Table 4

As we have argued in great detail in The State of Working America (Mishel et al. 2009) and in other studies dating back to 1994 (with my frequent co-author, Jared Bernstein) technological change and unmet needs for skill have had little to do with the growth of wage inequality over the last 30 years. This is not to say that there hasn’t been an increased employer demand for workers with more skills and more education: that has been happening for at least a century. What this means is that the growing need for “education” has been met with a growing supply. For instance, between 1973 and 2007 the share of the workforce with bachelor’s degrees and advanced degrees has doubled, from about 10% of the workforce with a bachelor’s degree and 4.5% with an advanced degree.

Regardless of the pressures or lack of them from the labor market, it would be a very positive thing to give every student who wants to obtain a college education a real chance—resources and the appropriate education in K-12—to attend and complete college, even if this drives down the college wage. One could argue that the issue facing the nation is not so much the need to vastly increase the number of college graduates but to give broader access to the asset of a completed college education. While employer demand is not booming so much that we need to vastly boost college graduation—it will continue to expand at a rate fast enough to satisfy employer needs—it may be the case that moving forward we will have a challenge to generate enough college graduates because we will be exhausting the traditional sources of their supply, the white middle  and upper classes. (That is an avenue of research the author expects to pursue.)

Furthermore, it is still certainly the case that completing college will put a person in a better position in the workplace relative to someone who has less education, at least on average. And there are clear non-economic benefits as well, from enjoying better health to being a more informed citizen. Going to college will not be a guarantee of a certain type of income or even access to certain employer benefits—recent college graduates (not just during the recession) earn less in their mid-twenties than those who graduated in the late 1990s, and they are far less likely to have jobs with employer-provided health insurance (Mishel et al. 2009)—yet recent college graduates are clearly faring better than those who have attained only a high school degree.

Wage inequality: It is about much more than college

Though this paper does not attempt to break down the rise of wage inequality into its various components or to analyze the various causes of rising wage inequality, we would like to offer a few findings that suggest that the movement of the college wage premium—the gap between college and high school wages—is not central to the growth of wage inequality over time.

What is going on at the top

One of the remarkable aspects of the growth of wage and income inequality over the last three decades is the immense growth at the very top of these distributions relative to every other group. This trend has not been explored frequently with the wage distribution because the main sources of data do not allow one to separate out the top 1%. However, research using Social Security wage data that we have been able to update does permit an assessment of wage growth at the very top. Consider the two illustrations in Figure G . The first shows that annual wages for the top 0.1% grew 324% from 1979 to 2006, 20 times faster than the 16% wage growth of the bottom 90% of wage earners. The top 1%, which includes the top 0.1%, had 144% growth in annual wages. The next rung down, those in the 95-99th percentile of wages, saw wage growth of 52%, at least three times faster than wage growth of the bottom 90% but nowhere near the growth of the top 1%.

Figure G

The second part of Figure G demonstrates the differences another way, detailing the ratio of the wages of the top 0.1% and the top 1% to the wages of the bottom 90%.

What happened at the top is not a trivial matter, as the top 1%’s share of all wages almost doubled from 7.3% to 13.6% over this period, nearly corresponding to the wage share loss of the bottom 90% (an 8.3 percentage-point decline in wage share). Thus, what the bottom 90% lost essentially accrued to the very top.

The stories usually told about changing production techniques and technological change and patterns of demand for skills have little to do with this critically important dimension of the growth of wage inequality.

The productivity–pay gap 

During the postwar period into the 1970s productivity and pay (compensation or wages per hour) grew in tandem, but starting in the late 1970s productivity growth began to far outpace the growth of pay. Between 1979 and 2007 productivity in the nonfarm business sector grew by 73%, while the hourly compensation of production, nonsupervisory workers (over 80% of all employment) rose by about 4%, with all of that growth occurring in the boom period of the late 1990s. If anything, the divergence between pay and productivity has widened in recent years, with the divergence stronger in the last recovery than in any prior recovery back into the 1970s.

Figure H shows the gap between the growth of productivity and that of the hourly compensation of the median college- and high-school-educated worker since 1995. Each variable is indexed to 1995, so the lines show growth relative to their 1995 value. Hourly compensation grew in the late 1990s for each type of worker, though not at the rate at which productivity improved. After the momentum of the wage growth in the 1990s boom faded in the 2002-03 period, there was no growth in pay, though productivity continued to climb (it actually grew somewhat faster than in the late 1990s).

Figure H

This gap between productivity and pay growth is a fundamental characteristic of the economy, and a key policy challenge is how to reconnect productivity and pay growth. It is hard to see how we can have rising consumption not based on asset bubbles or household debt unless we succeed in restoring wage growth as productivity rises.

That is not our focus here, however. The point for our current purposes is that the pay of college graduates is as disconnected from productivity growth as is the pay of high school graduates. Vastly expanding college enrollment and completion will do nothing to address this problem.

Education wage gaps are just a part of wage inequality

Many media and other discussions of the need for more people to complete college focus on the growth of the college wage premium, that is, the degree to which college graduates earn more than high school graduates. It is frequently assumed, as in the discussion by Autor and Acemoglu above, that the rising college premium accounts for the growth of overall wage inequality. In fact, that is not the case. Most of the growth of wage inequality—the wage gap between a high-wage and low-wage worker—can be explained by increased wage gaps among workers with the same education (e.g., the inequality of wages among college graduates) than by wage gaps between workers of different educations (e.g., the college wage premium). That being the case, then even if greater college enrollment and completion could eliminate the wage gap between college graduates and other workers, much of wage inequality (and the greater extent of wage inequality now versus the past) would still remain, and wage inequality would continue to grow.

In more technical language, there are two dimensions of wage inequality—”between-group” wage differentials, such as those relating to groups defined by their education and experience, and “within-group” wage inequality that occurs among workers of similar education and experience. The growth of within-group inequality can account for roughly 60% of the growth of overall wage inequality since 1973 (see Table 3.21 of The State of Working America ; Mishel et al. 2009). The connection between growing wage gaps among workers with similar education and experience is not easily related to technological change unless interpreted as a reflection of growing economic returns to worker skills (motivation, aptitudes for math, etc.) that are not easily measured (that is, the regressions used to estimate education differentials cannot estimate these kinds of differentials). However, there are no signs that the growth of within-group wage inequality has been fastest in those industries where the use of technology grew the most. It is also unclear why the economic returns for measurable skills (e.g., education) and unmeasured skills (e.g., motivation) should not grow in tandem. In fact, between-group and within-group inequality have not moved together in the various sub-periods since 1973.

The timing of the growth of within-group wage inequality does not easily correspond to the technology story. For instance, consider what happened during the 1995-2000 period associated with a technology-led productivity boom: within-group wage inequality actually declined among women and was essentially flat among men. In the early 1990s, the so-called early stages of the “new economy,” within-group wage inequality grew moderately, whereas it grew rapidly in the low-productivity 1980s. Within-group wage inequality did, however, start growing again as productivity accelerated further after 2000 but still lags far behind the 1980s pace. All in all, changes in within-group wage inequality do not seem to mirror the periods of rapid productivity growth or technological change. Perhaps more important, the extent of within-group wage inequality is not affected at all by the supply-side education and training policies that are usually linked to a claim about a shortage of college graduates—so there is no reason to believe that vastly increasing college enrollment and completion will diminish within-group wage inequality.

The growth of inequalities among college graduates has an important practical interpretation as well. As Richard Freeman of Harvard University has pointed out, the wider variance of earnings among college graduates implies that obtaining a college degree is becoming a riskier investment.

Wage inequality in the 2000s

It is surprising that the story of the education premium driving wage inequality persists in the face of its complete failure to explain wage inequality in the 2000s. Most discussions, like those referred to above, make it seems as if the trends of the 1980s were a juggernaut that continued unabated throughout the 1990s and 2000s. In fact, the demand for college graduates relative to other workers has grown the least in this decade compared to other postwar decades, and the college premium, which has grown substantially since the late 1970s, has not grown much at all in recent years. Finally, the actual real wage of college graduates has not grown in about 10 years. Along these lines it is noteworthy that the jobs obtained by young college graduates in recent years pay less than the jobs obtained by those graduating five and 10 years earlier, both in terms of their wages and in the probability that employers provide health insurance or pension coverage.

Together, these trends suggest that the forthcoming supply of college graduates is meeting the growing demands of employers for such workers. Moreover, these trends suggest that a rapid expansion of the supply of college graduates will cause the wages of college graduates to decline, assuming that the productivity–pay gap continues unabated. We can expect the wages of young college graduates and male college graduates (whose wages are currently in decline) to experience the steepest declines. That may or may not be a desirable outcome, but it is definitely not the outcome that most people would expect given the claims that graduating many more people from college will prevent a rise of inequality or reduce inequality.

A relatively flat line cannot explain a rising line

Table 5 presents two wage ratios, one describing the difference between high-wage and middle-wage workers (the logged wage ratio of the 95th percentile to the median) and the other the difference between the wages earned by college graduates and high school graduates (called the college–high school wage premium). The data in Table 5 show the changes in the last three business cycles (1979-89, 1989-2000, and 2000-07) in terms of both the total change and the annual change (which allows for a better comparison of periods of different length).

Table 5

In the 1980s the trends in overall wage inequality at the top half of the wage distribution—illustrated by the 95/50 wage ratio—correspond closely to the growth of the college wage premium. In the 1990s business cycle both wages continued to rise, though at a somewhat slower pace. More significant for our discussion, though, is that the college premium in the 1990s no longer was rising as fast or faster than the 95/50 wage ratio: rather, the college premium rose about 70% as fast. This divergence became even stronger in the 2000s, when the college wage premium rose hardly at all (up 0.003 log points per year for men) and the 95/50 wage ratio continued to grow strongly among men (the same 0.01 log point pace as in the 1990s) and among women (though at a somewhat slower pace than in the 1990s). It is hard to explain how a trend that became relatively flat—the growth of the college wage premium—is said to be driving fast-growing wage inequality.

The relative demand for college graduates slows down

Table 6 presents estimates of changes in the relative wages, relative supply, and relative demand for college graduates (those with a four-year degree or more and some of those with an education beyond high school) for periods covering the last 90 years (from the work of Claudia Goldin and Lawrence Katz). These measures show whether college graduates are becoming better paid and more plentiful relative to those without a college degree. Using an assumed value for the elasticity of substitution (i.e., how easy it is to replace a college worker with one who does not have a college degree in the process of producing goods and services) one can calculate, as this table does, trends in relative demand for college graduates. In effect, the more the relative supply or the relative wage of college graduates increases, the more the relative demand for college graduates must have risen (or else the increased relative supply would have led to lower relative wages). Because these measures include those with an advanced degree beyond college along with those with at most a bachelor’s degree, they overstate, in my view, the growth of the relative demand and wages of those with a bachelor’s degree (although one cannot be sure, since some workers with less than a college degree are also included). For purposes of this discussion we will refer to this group as college graduates.

Table 6

What does the pattern in Table 6 tell us? First, the relative demand for college graduates grew over the entire period (except during the special circumstances of World War II, when wages grew faster for non-college workers), and an expanding relative supply of college graduates occurred throughout this period. In this light we can safely say that employers have demonstrated an increasingly greater need for college graduates over this entire period.

The data in Table 6 are also informative about the last few decades. In the 1970s the wages of college graduates declined relative to other workers in response to a rapid growth in the supply of college graduates that overwhelmed the growing need for them. But their relative wages rapidly recovered and grew in the 1980s. It is this growth of the college wage at a time of rapid growth in overall wage inequality that has focused attention on education/wage gaps and led to technological change as an explanation.

It is critical to note, however, that the trends since 1990, especially in the 2000s, do not fit an explanation of a technologically driven demand for college-educated workers driving up their wages and therefore driving up wage inequality. Note that the relative demand for college graduates grew more slowly in the 1990s than in any previous period since World War II, and that relative demand grew even more slowly in the 2000-05 period than in the 1990s. That is, the rapid growth of the need for college graduates is not a juggernaut launched in the early 1980s that continues to this day: rather, the relative demand for college graduates has been slowing down in each decade since the 1980s and is now growing at a historically slow pace. It is this slow pace of the most recent period that might be the best clue to the future needs for college graduates.

This change in trend would suggest that the argument that we are in a time of historically rapid change in the need for education/skills in the workplace is not accurate, at least if one equates a college degree with skills. In fact, during the entire period since 1980 the relative demand for college graduates grew no faster than during the prior 30 years. So, given that wage inequality grew faster in recent decades than in earlier decades when technologically driven demands for college graduates were at least as rapid, it is difficult to say that a more rapid rise in technological change drove up wage inequality in recent years. That is, there was not an acceleration of a technologically driven demand for college graduates that can explain why wage inequality rose in the last three decades but did not in the prior three decades.

The fact that skill-biased technological change has not been more rapid in recent years, as evidenced by the measured growth in relative demand for college graduates, is even clearer when one digs a bit deeper into the measures used in Table 6. The measure of relative demand, as explained earlier, is deduced from changes in relative supply and the growth in relative wages. It is more accurate to say that this measure of relative demand captures all non-supply factors that influence relative wages, including all institutional changes (minimum wage, unionization, norms, etc.) and all changes in relative demand (arising from technological change but also globalization, shifts in consumer demand toward services, and so on). In this light, technical change is just one component driving the measured “relative demand” for college graduates presented in Table 6. Given that other factors have been more important in the last few decades, including institutional ones, such as the lowering of the minimum wage and deunionization (which raise the relative wage of college graduates by lowering the wages of those without a college degree), and globalization, it seems certain that technical change was playing a smaller role in the last few decades than in the pre-1980 period.

Last, note that the growth of the college wage premium in the 2000-05 period was the slowest of any period, other than when the premium actually declined in the 1970s (due to the rapid expansion of college graduates) and during World War II. This measure, however, includes those with advanced degrees beyond college (and some who have less than a four-year college degree), so it may actually be overstating the growth in the college premium in recent years.

The wage growth of college graduates in the 2000s

We have already seen in Figure H that the real hourly compensation (wages and benefits) of both college graduates and high school graduates failed to grow in the recovery of the prior business cycle. Figure I shows the trends of the median weekly earnings of college graduates (those with just a bachelor’s degree) and high school graduates since 2000. These data are drawn from the Bureau of Labor Statistics wage series for those ages 25 and over. As the data show, the median college graduate was earning the same weekly pay in 2009 as in 2000. This stagnation of wages for college graduates preceded the current Great Recession.

Figure I

The wage trends are even more disappointing when one examines recent college graduates, a group one might imagine includes the best technologically prepared group of college graduates. In updating State of Working America analyses we have found that young college graduates (defined as those ages 23-29) were earning lower wages than those who graduated ahead of them. For instance, between 2000 and 2007 the wages of young college graduates fell 2.5% among men and 1.6% among women. The wages fell a bit more during the recession years from 2007 to 2009.

Health insurance coverage has fallen among young college graduates in recent years, from 70.6% covered in 2000 to 65.7% in 2007. Pension coverage among young college graduates fell from 54.6% in 2000 to 46.6% in 2007. This sharp reduction in both health and pension benefits for young college graduates over the last few years indicates a substantial job quality problem even for those with the highest educational attainment.

It is also noteworthy that weekly wages have fallen about $40 for the median male full-time college graduate between the first half of 2000 and the comparable period in 2010.

Will a large expansion of college graduates lead to reduced wages and benefits?

The most recent trends, those in the prior business cycle plus those in the current downturn, indicate that the demand for college graduates is growing at a historically slow rate and that the wages of college graduates have been stagnant. The earlier discussion of structural unemployment in the recession showed that unemployment has affected college graduates a great deal and that the college graduate share of unemployment and long-term unemployment has remained at pre-recession levels. These data provide some confirmation that the recession is not introducing a major shift favorable to college graduates. In this environment we have seen that the wages and benefits of young college graduates have deteriorated relative to those of their older siblings who graduated ahead of them. My conjecture would be that these demand conditions can be expected to prevail in the future and that any major expansion of the supply of college graduates (beyond the pace of expansion in recent years) would necessarily lead to steady decline in college wages and benefits, with the wages and benefits of recent college graduates and male college graduates suffering the most. This would definitely lead to less wage inequality, as the wage gap between college and high school graduates would shrink. This, however, is hardly anyone’s favored recipe for shared prosperity.

It would be useful to work through all the expected employment shifts to determine whether there are any trends that might lead to a surge in the need for college graduates, though none come to mind. Some trends suggest a potential slowing of the growing demand for college graduates, such as an expected shrinkage of the financial sector and pressure on the federal and state and local governments to curtail employment as spending grows more slowly. We know that there is a surge in college enrollment induced by the recession  that may already be providing a major boost to their supply. If so we may have more supply and less demand for college graduates than recent modeling would show.

Finally, let us look at the pay levels and education and skill requirements of the jobs that are projected by the Bureau of Labor Statistics to be created over the next 10 years. These projections do not take account of the trends noted just above. Some analysts examine which occupations are expected to grow at the fastest (and slowest) rates, while others examine which occupations will create the most (or least) absolute number of jobs. Our purpose here is to assess whether the types of jobs that are expected to be created will significantly change the wages that workers earn or significantly raise the quality of work or the skill/education requirements needed to fill tomorrow’s jobs. This exercise requires an analysis of how the composition of jobs will change, i.e., which occupations will expand or contract their share of overall employment.

Table 7 presents such an analysis for the 754 occupations for which the Bureau of Labor Statistics provides projections from 2006 to 2016 (there is a later BLS  projection than this one, though I doubt it will show different results). Through a shift-share analysis (weighting each occupation’s characteristic, such as wage level, by its share of total employment) we can see what the characteristics of jobs are in 2006 and what they will be in 2016 if the projections are realized.

Table 7

There are a few drawbacks to this analysis. One is that it does not take into account how the jobs of a particular occupation (one of the 754 we analyze) will change over the next 10 years. (For example, will employers’ education requirements for a loan officer or a parking lot attendant grow?) In other words, the changing “content” of particular jobs is a dimension of future skill requirements not captured by our analysis. Second, we have no point of historical comparison (due to lack of data availability owing to changing occupational definitions) for judging whether growth expected in the future is fast or slow relative to the past.

There are some strengths of the analysis, too. We are able to look at the education and skill requirements of occupations in two ways. One is to look at the educational attainment in each occupation now and assume that such education levels will prevail in the future. The second is to use the education and skill requirements that the BLS assigns to each occupation. So, we have one measure that reflects the workers that employers currently hire into each occupation (the “revealed preference” of employers) and another measure that draws on BLS’ judgment. There is still much to learn from how occupational composition shifts will affect the job and wage structure, especially whether the claim that there will be a jump in the need for college graduates is consistent with these projections.

Table 7 shows that employment will shift to occupations with higher median annual wages, but the effect will be to raise annual wages by 1.1% over 10 years (or about 0.1% per year). This is not a large change compared to the real wage growth that normally occurs each year or to the composition effects evaluated in earlier years (using a different occupation coding system). The analysis also shows that the jobs of the future will require greater education credentials but not to any great extent. In 2006, according to these data, the occupational composition of jobs requires that 27.7% of the workforce have a college degree or more. This share will rise by one percentage point to 28.7% by 2016. The jobs will entail no need to expand the share of the workforce with only some college, a group roughly the same size as the required college-educated workforce. The demand for workers with a high school degree or less will fall slightly, from 43.6% to 42.6% over the 2006-16 period.

Table 7 also provides a detailed assessment of the education or training needed to be employed in an occupation. The results suggest a shift to the occupations that require the most education or training (those requiring a bachelor’s degree or more increase their employment share by less than a percentage point) and, correspondingly, a shift from those occupations that require the least education and training (the bottom three categories lose a 1.1 percentage-point share of employment). Nevertheless, this method of gauging occupational skill requirements yields a lower estimate of the share of jobs requiring a college degree or more, just 21.4% in 2016; the other method, based on actual education in those occupations today, suggests a higher 28.7% of college graduates needed. So, using assessments of skill requirements in each occupation suggests a somewhat smaller growth in skill requirements and growth to a lesser level in 2016.

These projections show that occupational upgrading will continue in the future, as the jobs created will be in occupations with somewhat higher wages and educational and training requirements. This trend has been evident over the last century, and the developments in the future do not appear to be extraordinary in any sense. The need to greatly expand the size of the college-educated workforce cannot be demonstrated by looking at occupational projections. If future workers will need much more education than those currently working, it will only occur if the education requirements in particular occupations rise substantially.

Conclusion on the looming shortage of the college educated

More education and training is necessary to obtain the long-term growth we desire and to provide equal access to job opportunities for the entire population and workforce. This was the case 30 years ago and remains the case today. Individuals deciding whether to pursue more education and training would be wise to enhance their human capital, as it will place them in a better position as wage earners and as citizens.

That being said, the challenge we face with high and persistent unemployment exceeding 9% is not better education and training for those currently unemployed. Rather, we need more jobs. Moreover, the reason we have seen a huge increase in wage and income inequality over the last 30 years is not a shortfall in the skills and education of the workforce. Workers face a “wage deficit” much more than a “skills deficit.”

Moving forward, our primary challenge is not generating a greatly expanded supply of college graduates because otherwise employers will not have a sufficient number available to them. Rather, we need to provide access to further education (i.e., college completion) for the many working class and minority children who are now excluded from it so they can have a full opportunity to compete for the jobs that require such an education. Greatly expanding the pool of college graduates may help to lessen wage and income inequalities, but it will do so by forcing young college graduates to take jobs with lower pay and benefits than earlier cohorts and by pushing downward the average college graduate’s earnings (especially those of men). Those with advanced degrees will continue to see their salaries rise, but that group is only about a tenth of the workforce and even with rapid expansion its share will only rise slowly.

The challenge, in my view, is to provide a much broader path to prosperity, one that encompasses those at every education level. The nation’s productivity has grown a great deal in the last 30 years, up 80% from 1979 to 2009, and such productivity growth or better can be expected in the future. Yet with all the income generated in the past and expected in the future it is difficult to explain why more people have not seen rapid income growth. It is not the economy that has limited or will limit strong income growth, but rather the economic policies pursued and the distribution of economic and political power that are the limiting factors.

Acknowledgements

The first part of the paper draws on joint work by the author and EPI economist Heidi Shierholz and research assistant Kathryn Edwards. The second part draws on many years of work conducted jointly with former EPI economist Jared Bernstein and with Richard Rothstein, an EPI research associate. The paper was originally presented at the Scholars Strategies Network conference, “The Next American Economy: Debating How to Spur Innovation, Growth, and Jobs,” Harvard University, September 30, 2010.

An earlier version of this paper was prepared for the Scholars Strategy Network Conference on “The Future of the American Economy” in September 2010 as “Worrying about the Wrong Things: A Skeptic’s Look at Structural Problems in the Labor Market.”

  • Data sources are: Table 7. Capacity Utilization in Manufacturing. Series ; G. 17 Industrial Production and
  • Domestic Purchases;  Real Final Sales to Domestic Purchasers, Chained Dollars. Bureau of Economic Analysis; Gross Domestic Product. National Income Product Accounts. Table 1.1.6;. Real Gross Domestic Product, Chained Dollars. Bureau of Economic Analysis; 6. Congressional Budget Office. Table 2.2 Key Assumptions in CBO’s Projections of Potential Output. “The Budget and Economic Outlook 2010-2020.” August 2010.
  • Output per hour of nonfarm business sector from “Productivity and Costs”, Bureau of Labor Statistics. Number shown describes growth from first quarter 2009 to first quarter 2010, first quarter 2010 to second quarter 2010, and fourth quarter 2007 to second quarter 2010. See http://www.bls.gov/news.release/pdf/prod2.pdf .
  • Net investment from NIPA, reflects investment less depreciation.
  • “Seasonally Adjusted Statewide Unemployment Rates. Local Area Unemployment Statistics,” Bureau of Labor Statistics. The 11 states are Oklahoma, Iowa, Minnesota, Wyoming, Kansas, Hawaii, Vermont, New Hampshire, Nebraska, North Dakota, and South Dakota. Population includes the civilian noninstitutional population age 16 and older from the “Local Area Unemployment Statistics,” Bureau of Labor Statistics.
  • All job opening, layoffs, and hiring data used throughout are seasonally adjusted, total U.S. from the “Job Openings and Labor Turnover Survey,” Bureau of Labor Statistics.
  • The data are for private-sector openings and hires to avoid any impact of temporary Census hiring.

Acemoglu, Daron. 2010. “Is America Facing an Increase in Structural Unemployment? Yes, the Labour Force Hasn’t Responded to Shifting Demand for Skills.” The Economist , July 25. http://www.economist.com/economics/by-invitation/guest-contributions/yes_labour_force_hasnt_responded_shifting_demand_skills/print

Altig, David. 2010a. “A Curious Unemployment Picture Gets More Curious.” Macroblog. Federal Reserve Bank of Atlanta, July 16. http://macroblog.typepad.com/macroblog/2010/07/a-curious-unemployment-picture-gets-more-curious.html

Altig, David. 2010b. “Just How Curious Is That Beveridge Curve?” Macroblog Federal Reserve Bank of Atlanta, August 18. http://macroblog.typepad.com/macroblog/2010/08/just-how-curious-is-that-beveridge-curve.html

Autor, David. 2010. “The Polarization of Job Opportunities in the U.S. Labor Market: Implications for Employment and Earnings.” Center for American Progress and The Hamilton Project. http://econ-www.mit.edu/files/5554

Canalog, Victor. 2010. “Reis Quarterly Briefing.” Reis Reports. Speech given on August 11. http://www.reisreports.com/blog/category/reis-quarterly-briefing/

Kocherlakota, Narayana. 2010. “Inside the FOMC.” Speech given at Marquette, Michigan, August 17. http://www.minneapolisfed.org/news_events/pres/speech_display.cfm?id=4525

Mishel, Lawrence, Heidi Shierholz, and Kathryn Edwards., 2010. “Reasons for Skepticism About Structural Unemployment” Washington, D.C.: Economic Policy Institute

Mishel, Lawrence, Jared Bernstein, and Heidi Shierholz. 2009. The State of Working America 2008/2009. Ithaca, N.Y.: Cornell University Press.

Tasci, Murat, and John Linder. 2010. “Has the Beveridge Curve Shifted?” Economic Trends. Federal Reserve Bank of Cleveland, August 10. http://www.clevelandfed.org/research/trends/2010/0810/02labmar.cfm

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Unemployment: Causes and Effects Essay

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Unemployment is a significant social and economic problem. Not always positive aspects of enterprise development contribute to a decrease in the percentage of unemployed. The negative impact may be cumulative along with phenomena such as inflation external factors, including the pandemic. Difficulties in obtaining an education for low-income families only widen the gap between the rich and the poor, which in America is already the largest in the world (Telford, 2019). Consequently, the leading causes of unemployment are inflation, advanced technology, and lack of education or skills for employment.

Inflation drives up prices in the economy. Naturally, the price of both products and the materials they have produced increases. Employers seek to recoup the costs of inflation by constantly increasing the financial performance of sales. One of these methods is to increase the gross profit ratio by reducing the cost of production. As a result, the company seeks to optimize costs by reducing wages and saving on various employee benefits. This unfair practice leads to layoffs.

One of the vectors of technology development, which is now the most crucial unemployment, is automation. The replacement of human labor brings the company to eliminate the human error factor, the ability to operate robots around the clock, reducing jobs. From an economic point of view, many of yesterday’s professionals consider their position obsolete and remain without skilled work. A possible way out of this situation is to retrain as a consultant to maintain such machines.

The lack of skills can be caused by several reasons, from income inequality that limits access to education to the narrow specialization of a company that requires training. On-the-job training requires, in turn, the cost of human and time resources, which can affect the company’s operations. As a result, many companies do not train employees but want to get a qualified specialist with a high salary immediately. Applicants lacking these skills are forced to remain unqualified, contributing to rising unemployment and shortages.

Telford, T. (2019). Income inequality in America is the highest it’s been since Census Bureau started tracking it, data shows. Washington Post , 26. Web.

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Essay on Unemployment for Children and Students

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One of the major hindrances in the growth of any country is unemployment. Unemployment is a serious issue in India. Lack of education, lack of employment opportunities and performance issues are some of the factors that lead to unemployment. The government of India must take effective steps to eliminate this problem. One of the main problems faced by the developing countries is unemployment. It is not only one of the major obstacles in the country’s economic growth but also has several other negative repercussions on the individual as well as the society as a whole.

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Long and Short Essay on Unemployment in English

We have provided below short and long essay on unemployment in English for your knowledge and information. These essays have been written in simple and impressive language to convey the message with minimum effort.

After going through these Essays on Unemployment you will know about the factors leading to unemployment in India; what are the possible solutions for the eradication of unemployment; different types of unemployment; initiatives taken by the government to reduce unemployment; unemployment statistics in India etc.

These Unemployment essay will be useful in your school/college events of essay writing, speech giving or debate.

Unemployment Essay 1 (200 words)

People who are willing to work and are earnestly looking for job but are unable to find one are said to be unemployed. It does not include people who are voluntarily unemployed as well as those who are unable to seek job due to certain physical or mental health problem.

There are various factors that lead to the problem of unemployment in the country. These include:

  • Slow Industrial Growth
  • Rapid Increase in Population
  • Focus on Theoretical Education
  • Fall in Cottage Industries
  • Lack of alternative employment opportunities for the agricultural workers
  • Technological Advancement

Unemployment does not impact only the individuals but also the growth of the country. It has a negative impact on social and economic growth of the country. Here are some of the consequences of unemployment:

  • Increase in crime rate
  • Poor standard of living
  • Loss of skill
  • Political instability
  • Mental health issues
  • Slow economic growth

Surprisingly, despite the negative repercussions it has on the society, unemployment is one of the most overlooked issues in India. The government has taken certain steps to control the problem; however, these have not been effective enough. The government should not just initiate programs to control this problem but also keep a check on their effectiveness and revise them if need be.

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Unemployment Essay 2 (300 words)

Introduction

Unemployment is a curse to the society. It does not only impact the individuals but also the society as a whole. There are a number of factors that lead to unemployment. Here is a look at these factors in detail and also the possible solutions to control this problem.

Factors Leading to Unemployment in India

  • Growth in Population

The rapid growth in the population of the country is one of the leading causes of unemployment.

  • Slow Economic Growth

Slow economic growth of the country results in lesser employment opportunities for people, thereby leading to unemployment.

  • Seasonal Occupation

Large part of the country’s population is engaged in the agricultural sector. With this being a seasonal occupation, it provides work opportunity only for a certain part of the year.

  • Slow Growth of Industrial Sector

The growth of industrial sector in the country is slow. Thus, the employment opportunities in this sector are limited.

  • Fall in Cottage Industry

The production in cottage industry has fallen drastically and this has left several artisans unemployed.

Possible Solutions to Eradicate Unemployment

  • Population Control

It is high time the government of India should take stern steps to control the population of the country.

  • Education System

The education system in India focuses majorly on the theoretical aspects rather than skill development. The system must be improved to generate skilled manpower.

  • Industrialization

The government must take steps to boost the industrial sector to create greater opportunities for people.

  • Overseas Companies

The government must encourage foreign companies to open their units in the country to generate more employment opportunities.

  • Employment Opportunities

Employment opportunities must be created in rural areas for seasonally unemployed people.

The problem of unemployment in the country has persisted since long. While the government has launched several programmes for employment generation, desirable progress has not been achieved. The policy-makers and the citizens should make collective efforts in creating more jobs as well as acquiring the right skill-set for employability.

Unemployment Essay 3 (400 words)

Unemployment in India can be divided into many categories including disguised unemployment, open unemployment, educated unemployment, cyclic unemployment, seasonal unemployment, technological unemployment, underemployment, structural unemployment, frictional unemployment, chronic unemployment and casual unemployment. Before leaning about these types of unemployment in detail let us understand as to who exactly is said to be unemployed. It is basically a person who is willing to work and is seeking an employment opportunity, however, is unable to find one. Those who choose to remain unemployed voluntarily or are unable to work due to some physical or mental health issue are not counted as unemployed.

Here is a detailed look at the different types of unemployment:

Disguised Unemployment

When more than the required numbers of people are employed at a place, it is said to be disguised unemployment. Removing these people does not impact the productivity.

Seasonal Unemployment

As the term suggests, this is the type of unemployment that is seen during certain seasons of the year. The industries mostly affected by seasonal unemployment include the agricultural industry, resorts and ice factories, to name a few.

Open Unemployment

This is when a vast number of labourers are unable to seek a job that provides them regular income. The problem occurs as the labour force increases at a much greater rate compared to the economy’s growth rate.

Technological Unemployment

The use of technological equipments has also led to unemployment by reducing the requirement of manual labour.

Structural Unemployment

This kind of unemployment occurs because of a major change in the country’s economic structure. This is said to be a result of technological advancement and economic development.

Cyclic Unemployment

A reduction in the overall level of business activities leads to cyclic unemployment. However, the phenomenon is short-run.

Educated Unemployment

Inability to find a suitable job, lack of employable skill and flawed education system are some of the reasons why the educated lot remains unemployed.

Underemployment

In this kind of unemployment people either take up a job on part time basis or take up work for which they are over-qualified.

Frictional Unemployment

This occurs when the demand of labour force and its supply are not synced appropriately.

Chronic Unemployment

This is long-term unemployment that continues in a country due to the rapid increase in population and low level of economic development.

Casual Unemployment

This may occur because of a sudden fall in demand, short-term contracts or shortage of raw material.

Though the government has launched several programmes to control each type of unemployment, however, the results are far from satisfactory. The government needs to devise more effective strategies for employment generation.

Unemployment Essay 4 (500 words)

Unemployment is a serious problem. There are a number of factors including lack of education, lack of employment opportunities, lack of skill, performance issues and increasing population rate that lead to this issue in India. Unemployment has a number of negative repercussions on the individuals as well as the country as a whole. The government has taken several initiatives to control this problem. Some of these are mentioned here in detail.

Government Initiatives to Reduce Unemployment

  • Training for Self Employment

Launched in 1979, the program was named, National Scheme of Training of Rural Youth for Self Employment (TRYSEM). It is aimed at reducing unemployment among the youth in the rural areas.

  • Integrated Rural Development Programme (IRDP)

In the year 1978-79, the Indian government launched the Integrated Rural Development Programme to ensure full employment opportunities in rural areas. A sum of Rs. 312 crore was spent on this programme and as many as 182 lakh families benefited from it.

  • Employment in Foreign Countries

The government helps people get employment in overseas companies. Special agencies have been established to hire people for work in other countries.

  • Small and Cottage Industries

In an attempt to reduce the issue of unemployment, the government has also developed small and cottage industries. Several people are making their living with this initiative.

  • The Swaran Jayanti Rozgar Yojana

This program is aimed at providing self-employment as well as wage-employment opportunities to the urban population. It includes two plans:

  • Urban Self-Employment Programme
  • Urban Wage Employment Programme
  • Employment Assurance Scheme

The program was launched in as many in 1994 in as 1752 backward blocks in the country. It provided unskilled manual work for 100 days to the poor unemployed people living in rural areas.

  • Drought Prone Area Programme (DPAP)

The program was started in 13 states and covered as many as 70 drought-prone districts with an aim to remove seasonal unemployment. In its seventh plan, the government spent Rs. 474 crore.

  • Jawahar Rozgar Yojana

The program launched in April 1989 aimed at providing employment to a minimum of one member in each poor rural family for a period of fifty to hundred days a year. The employment opportunity is provided in the person’s vicinity and 30% of these opportunities are reserved for women.

  • Nehru Rozgar Yojana (NRY)

There are a total of three schemes under this program. Under the first scheme, the urban poor are given subsidy to establish micro enterprises. Under the second scheme, wage-employment is arranged for labourers in cities having a population of less than 10 lakh. Under the third scheme, urban poor in the cities are given employment opportunities matching their skills.

  • Employment Guarantee Scheme

Unemployed people are provided economic assistance under this scheme. It has been launched in a number of states including Kerala, Maharashtra, Rajasthan, etc.

Apart from this, many other similar programs have been launched to reduce unemployment.

Though the government has been taking several measures to control the problem of unemployment in the country a lot still needs to be worked upon in order to curb this problem in true sense.

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Unemployment Essay 5 (600 words)

Unemployment is a grave issue. There are a number of factors that lead to it. Some of these include lack of proper education, lack of good skill set, inability to perform, lack of good employment opportunities and rapidly increasing population. Here is a look at the unemployment statics in the country, the consequences of unemployment and the measures taken by the government to control it.

Unemployment: Statistics in India

The Ministry of Labour and Employment of India keeps the records of unemployment in the country. The measure of unemployment is calculated based on the number of people who had no work for a substantial amount of time during the 365 days preceding the date of collation of data and are still seeking employment.

India saw an average of 7.32 percent unemployment rate from 1983 to 2013 with a highest of 9.40 percent in the year 2009 and a record low of 4.90 percent in 2013. In the year 2015-16, the unemployment rate shot up significantly with 8.7 per cent for women and 4.3 per cent for men.

Consequences of Unemployment

Unemployment leads to serious socio-economic issues. It does not only impact the individuals but the society as a whole. Shared below are some of the major consequences of unemployment:

  • Increase in Poverty

It goes without saying that increase in unemployment rate results in increase in the rate of poverty in the country. Unemployment is largely responsible for hampering the economic growth of the country.

  • Increase in Crime Rate

Unable to find a suitable job, the unemployed lot usually takes the path of crime as this seems to be an easy way of making money. One of the main causes of rapidly increasing cases of theft, robbery and other heinous crimes is unemployment.

  • Exploitation of Labour

Employees usually take advantage of scarcity of jobs in the market by offering low wages. Unable to find a job matching their skill people usually settle for a low-paying job. Employees are also forced to work for more than the set number of hours each day.

  • Political Instability

Lack of employment opportunities results in loss of faith in the government and this often leads to political instability.

  • Mental Health

The dissatisfaction level among unemployed people increases and it can gradually lead to anxiety, depression and other mental health problems.

  • Loss of Skill

Staying out of job for long period of time makes one dull and eventually results in the loss of skill. It also lowers a person’s self confidence to a large extent.

The government of India has taken several initiatives to reduce the problem of unemployment as well as to help the unemployed lot in the country. Some of these include the Integrated Rural Development Programme (IRDP), Jawahar Rozgar Yojana, Drought Prone Area Programme (DPAP), Training for Self-Employment, Nehru Rozgar Yojna (NRY), Employment Assurance Scheme, Prime Minister’s Integrated Urban Poverty Eradication Program (PMIUPEP) Development of Organized Sector, Employment Exchanges, Employment in Foreign Countries, Small and Cottage Industries, Employment Guarantee Scheme and Jawahar Gram Samridhi Yojana, to name a few.

Besides offering employment opportunities by way of these programs, the government is also sensitizing the importance of education and providing skill training to the unemployed people.

Unemployment is the root cause of various problems in the society. While the government has taken initiatives to reduce this problem, the measures taken are not effective enough. The various factors causing this problem must be studied well to look for effective and integrated solutions for the same. It is time the government should recognize the sensitivity of the matter and take some serious steps to reduce it.

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Global unemployment set to decline slightly this year: UN labour agency

Garment workers stand next to a line of sewing machines in a clothing plant in Lesotho.

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Global unemployment numbers will fall modestly this year, but unequal access to jobs is still a problem worldwide, particularly for women in poorer countries, the International Labour Organization (ILO) said in a new report published on Wednesday.  

The updated World Employment and Social Outlook report predicts that the global unemployment rate will be 4.9 per cent in 2024, slightly down from 5.0 per cent in 2023. 

This represents a revision from the previous projection in January of 5.2 per cent for this year, which is expected to flatten in 2025, with unemployment remaining at 4.9 per cent.

‘Uneven playing field’ 

The report, however, points to a persistent lack of employment opportunities. 

Currently, the number of people worldwide without a job but who want to work stands at 402 million. This includes 183 million people who are counted as unemployed. 

Women, especially those in low-income countries, are disproportionately affected by the lack of job opportunities. 

“Despite our efforts to reduce global inequalities, the labour market remains an uneven playing field, especially for women,” said ILO Director-General Gilbert F. Houngbo. 

Inclusive policies needed 

In low-income countries, more than one in five women, 22.8 per cent, are unable to find work, compared with almost one in seven men, or 15.3 per cent. 

This contrasts with high-income countries, where the rate is nearly 10 per cent for women and 7.3 per cent for men. 

Furthermore, although women in high-income countries earn 73 cents for every dollar earned by men, this figure drops to just 44 cents in low-income countries. 

The report found that family responsibilities are behind much of these differences, “indicating that women’s disproportionate share of unpaid care work plays a major role in shaping gender employment gaps globally”. 

Mr. Houngbo called for countries to work towards inclusive policies that take into considerations of all persons in the workforce. 

“We must place inclusion and social justice at the core of our policies and institutions. Unless we do, we will fall short of our objective to ensure strong and inclusive development," he said. 

SDG 8

SDG 8: ENSURE DECENT WORK FOR ALL

  • Take immediate measures to eradicate forced labour, modern slavery and human trafficking
  • Protect labour rights, and promote safe, secure environments for all workers
  • Sustain per capita economic growth and at least seven per cent gross domestic product growth per annum in  least developed countries
  • Achieve higher levels of economic productivity through diversification, technology and innovation
  • Improve global resource efficiency in consumption and production
  • Decouple economic growth with environmental degradation

Global unemployment is expected to fall below pre-pandemic levels, although not in low-income countries

ALFRED: Archival Federal Reserve Economic Data, Economic Data Time Travel from the St. Louis Fed

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"It's difficult to find a job that matches your degree and aspirations," a young jobseeker told AFP. (Photo: AFP/Hector RETAMAL)

SHANGHAI: At a job fair for soon-to-be graduates in central Shanghai, recruiters sat bored under washed-out tarpaulins as rain and an apparent lack of interest kept potential young employees away.

The empty seats belied China's stubbornly high youth unemployment rate - a problem so pressing that President Xi Jinping this week told top Communist Party (CCP) cadres it should be a "top priority".

His words have been seen by many analysts as a signal that reforms could be in the pipeline ahead of July's Third Plenum, a meeting that has historically unveiled important changes in economic policy direction.

Youth unemployment stood at 14.7 per cent in April, official data showed - and in June, another 11.8 million students will graduate from university, adding to the bottleneck.

That number had soared to an unprecedented 21.3 per cent in mid-2023, before officials paused publishing monthly figures. They began releasing them again in December after adjusting the calculation method.

Hospitality and human resources firms dominated Friday's (May 31) small job fair, one of many hosted by local authorities over recent weeks in anticipation of the imminent influx of university leavers.

"It's difficult to find a job that matches your degree and aspirations," one of the few young jobseekers at the fair, a data sciences student, told AFP.

"Lots of college students actually have too high expectations," said Julia Shao, who was recruiting for a restaurant chain.

"They do not prefer this kind of basic position. They prefer ... a fancy job."

essay the problem of unemployment

More university graduates in China turning to smaller cities for employment: Report

essay the problem of unemployment

Record number of graduates set to enter China’s workforce amid economic headwinds

"policy shift underway".

Xi specifically mentioned graduates in his speech to the CCP Politburo on Monday, noting that "more jobs should be created for them to apply what they have learned and what they are adept at".

His remarks follow "a steady drumbeat of comments from China's leadership underlining the urgency" of the matter, Erica Tay, director of macro research at Maybank, told AFP.

The issue has been hanging over the government for some time.

Together with persistently low consumption and a long-running property sector crisis, the unemployment situation has been labelled a key culprit for China's uneven post-pandemic recovery.

"While details in Xi's comments are vague, it's clear a policy shift is underway," said Harry Murphy Cruise of Moody's Analytics.

"We expect policies aimed at reducing youth unemployment to be a key pillar of the discussions (at the Third Plenum)."

In the remarks published Monday, Xi said young people should be encouraged "to find jobs or start businesses in key fields (and) industries".

"Market-oriented and social channels should be expanded for young people to find a job," he was quoted as saying.

Murphy Cruise said he expected the government to increase wage subsidies to persuade companies to hire recent graduates, as well as create more work placements for students.

However, these were only "band-aid solutions", he said.

In the long term, "larger industrial and education policy reforms" were needed to ensure a better match between graduates' skills and employer demands, he said.

essay the problem of unemployment

She has a master’s but no job and lives on discount coupons. In China, there are many like her

"lower expectations".

There is now a push to fill roles that "dovetail with key policy priorities" or where skills shortages exist, said Tay, like industrial upgrading and scientific innovation.

With job opportunities drying up for those holding sociology, journalism and law degrees, she said, some kind of "government-sponsored earn-as-you-learn training programmes" might be needed to fill more in-demand roles.

Near the law faculty of a top Shanghai university, final-year students said the job market was indeed tough.

"Post-pandemic, it is a little more difficult than before," 22-year-old Qian Le said, referencing recent layoffs and pay cuts at top Chinese law firms.

"Even those who are already in jobs may not be able to keep them, so it may be more difficult for new people to get in."

Qian and her classmate Wang Hui had both opted to pursue further study.

"The economic situation is quite sluggish, many companies have gone bankrupt, and many jobs have been reduced," Wang told AFP.

China's once-freewheeling private sector has slowed significantly, in part because of past government crackdowns on companies including tech giants and private tutoring firms.

Many young people are opting to study for civil service exams - seen as a more stable option - or like Wang and Qian, taking on post-graduate degrees.

In March, universities urged their students to actively look for jobs instead, said Tay.

But "competition is huge, and the number of undergraduates is gradually increasing every year", Wang said.

Karl Hu, another law student, said the difficulty was not in finding a job.

The problem was finding "a suitable career" in terms of salary level and benefits, he explained.

He himself had secured a good job at a bank, he said - but many would have to "lower their expectations".

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Why an open government group is calling on Delaware to investigate embezzlement problems

An open government group has asked the Delaware General Assembly to investigate an undisclosed embezzlement problem at the state Department of Labor's Division of Unemployment Insurance.  

John Flaherty, Delaware Coalition for Open Government board member, said the investigation request follows a May 6 story by WHYY News about a former Delaware Department of Labor supervisor who embezzled more than $181,000 from the state's unemployment insurance trust fund in 2023.

The state did not reveal the embezzlement despite state law specifying the disclosure of illegal activity in their official reports, Flaherty said.

"The disclosure of all this came about through the article on WHYY radio," he said. "We felt that the news media should not have to be the one that would disclose these kinds of violations of public trust."

The Delaware Department of Labor and state Auditor's Office were working to provide statements regarding the issue Thursday morning.

UNLOCKING UNEMPLOYMENT BENEFITS: What to know about filing in Delaware

According to the WHYY News' May 6 story, the state's Labor Department "acknowledged that former unemployment insurance administrator, Michael Brittingham, stole the money last year. Brittingham took his own life in April 2023 shortly after he was told he was under investigation."

According to his obituary, Brittingham worked for the Delaware Department of Labor as a tax administrator. He was 37 at the time of his death on April 3, 2023. He'd been living in the Harrington area.

Embezzlement discovery

The Delaware Department of Labor did not provide a response to questions regarding this issue Thursday.

State officials say the missing unemployment insurance funds were initially discovered by a labor department employee last year, and the case was referred to the Department of Justice. The justice department did not respond to requests for comment Thursday.

When Delaware Auditor of Accounts Lydia York went to perform an annual comprehensive financial audit of the Division of Unemployment Insurance, internal and external auditors found “material weaknesses and deficiencies in the internal controls” of the division that prevented completing an audit, York’s policy advisor Sam Barry said.

That resulted in the auditor’s office releasing a “special report” in March that alerted state officials to “an unprecedented disclaimer of opinion” and independent auditors finding that the unemployment compensation fund was “not auditable for fiscal year 2023,” according to the report .

Barry said the office lacked adequate, detailed records on the “day-to-day accounting” of the fund, which, as of June 30, 2023, had reported cash assets of about $390 million through contributions from the federal government and Delaware workers. 

“We don’t have detailed day-to-day records of money coming in and money going out, and we need those records to be complete and accurate in order for an audit to be completed,” Barry said. 

He said that auditors are working with the Division of Unemployment Insurance and outside certified public accountants to piece together the accounting records, and once complete, the state auditor will go back and perform a comprehensive audit of the division. 

A breach of public trust

According to the letter DelCOG sent to state lawmakers on Wednesday, it violates Delaware’s state code to withhold the disclosure of embezzled state funds. The failure to disclose this information “severely damages transparency, accountability and confidence” in state government, the group said. It’s also a breach of the public’s trust. 

“Additionally troubling is that the embezzled funds consisted of contributions not only by Delaware employers, but also by the federal government,” according to the letter obtained by Delaware Online/The News Journal.

Flaherty said there could be more than one instance of staff embezzling for all they know.

“So we'd like to find out how this situation occurred, what they're doing to stop it now and what they plan to do in the future,” he said.

DelCOG put the onus on the auditor's office for having needed to flag issues of embezzlement in the report it issued in March.

Barry, the auditor's policy advisor, said the "special report" was not a "mandated report," and thus the office "chose to file and make public and send to the members of the General Assembly" in order to flag the "disclaimer of opinion" and explain why the office couldn't perform an audit on the division last year.

By asking the General Assembly to exercise its “legally allowable oversight” of these state agencies, Flaherty said the hope is to give the public some answer about why this incident happened and assurance that it will not happen again.

“We're not looking to know the details, because that's really of no value,” he said. “But we just want to make sure that our oversight agencies are acting in the public interest and not trying to cover anything up here.”

As of 11 a.m. Thursday, Flaherty said he’d not heard from any state lawmakers.

“Nobody has responded yet,” he said. “But we hope that they take this issue seriously and they give it the time and attention that it deserves to make sure that the public has full confidence that the public monies are being well protected and not just misused as it happened in this particular case here.”

State Sen. Laura Sturgeon, who is the lead sponsor on Senate Substitute 1 for Senate Bill 21 that would create an Office of the Inspector General , said while the General Assembly may have authority to investigate, lawmakers don’t have the expertise nor does the legislative body have the staff to do a true investigation. 

Sturgeon said she is “incredibly sympathetic” and agrees that the issue should be investigated. 

“This is the exact reason why I introduced Senate Bill 21 creating an Office of the Inspector General because situations like this keep coming up,” she said. “It would be incredibly helpful, and hopefully bring a greater sense of trust and confidence in government if we had a completely independent office whose sole job is to do these investigations.”

The Delaware senator noted that legislators could potentially convene hearings, similar to what lawmakers did following the botched school water testing for lead in 2022, that could take “them to task on what happened and what went wrong and what we could do better in the future.”

Got a tip? Contact Amanda Fries at [email protected]. Follow her on X at @mandy_fries. Send tips or story ideas to Esteban Parra at (302) 324-2299 or [email protected] .

essay the problem of unemployment

South Africa elections 2024: Key issues by the numbers

South Africa will go to the polls on May 29 for the most unpredictable election in the country’s 30 years of democratic rule.

The governing African National Congress (ANC) is projected to lose its parliament majority for the first time, possibly paving the way for the country’s first coalition government.

With voter discontent high, leading opposition parties, including the Democratic Alliance (DA), the Economic Freedom Fighters (EFF), and newcomer umKhonto we Sizwe (MK) have put pressure on the ANC in online campaigns and countrywide rallies, promising sweeping reforms in hopes of swaying some 28 million registered voters to their side.

Young people constitute a key demographic, making up a bulk of the electorate. They are also the most removed from South Africa’s apartheid past, to which the ANC’s legacy as the party of liberation is closely tied.

Voting will be held across the country’s nine provinces, where people will cast ballots for national and provincial governments.

Here are the key issues that are top of mind for the majority of voters:

Jobs: One in three South Africans unemployed

The country has the highest unemployment rate in the world. For young people who have diplomas but find their education of no use, unemployment is the biggest issue on the ballot.

Analysts say poor industrialisation in the decades of ANC rule means Africa’s most advanced economy has failed to create jobs for its bulging youth population.

General unemployment rates rose slightly late last year from 31 percent to 33 percent during the first quarter of 2024.

The problem is particularly poignant among the country’s youth, aged 15-34. Unemployment in this group stands at 45.5 percent, higher than the national average.

By province, the Eastern Cape – known for being Nelson Mandela’s homeland, housing the city of Gqeberha, previously named Port Elizabeth, and being the poorest of all nine provinces – has the highest levels of unemployment at 42.4 percent. The North West province trails closely at 40.5 percent and the Free State at 38 percent.

On the other hand, the Western Cape, the home turf of the opposition DA party and where the city of Cape Town is located, has the country’s lowest unemployment levels at 21.4 percent, followed by the Northern Cape at 28.3 percent and KwaZulu-Natal at 29.9 percent.

Education and employment: Lingering inequalities

Historical inequalities continue to rack South Africa’s education sector, creating negative feedback in the employment sector.

Although schools were desegregated before the end of apartheid, Black-majority communities still have largely underfunded public schools with inadequate amenities like libraries and laboratories. Some do not have basic facilities like the internet and lack qualified teachers.

On the whole, the Black population has higher numbers of people who do not have any kind of education. Among white South Africans, however, a higher percentage are more likely to have attained a tertiary level education – three times the numbers seen in Black people, Indians, or mixed or multiracial communities.

Researchers say the lower levels of tertiary qualification in general are connected to lower skill levels and to the type of jobs people are qualified for. While 9.6 percent of people with a graduate degree are unemployed, the number more than quadruples for those who did not complete high school.

Other findings also point to the fact that school curriculums are not preparing young people for the job market as they are not aligned with employer needs. The results are a glaring skills and job mismatch: a 2019 report from the Boston Consulting Group, for one, found that there is a 50 percent mismatch between skills demanded and supplied in South Africa, contributing to a low-productivity workforce.

Crime: Rising and worsening

High levels of poverty, unemployment and inequality have led to increased violent crime in South Africa, worsened by the rise of organised criminal groups.

According to the South African Police Service’s annual crime report ( PDF ), during the 2022-23 financial year, 1.8 million counts of serious and violent crimes were reported across the country, an increase of 7.7 percent from the year before.

On average, 75 people are murdered every day, an increase of some 60 percent over the past 10 years.

Carjackings have more than doubled over the past 10 years from an average of 31 incidents per day in 2013 to 62 cases reported in 2023.

On the flip side, common robbery reports dipped by 12 percent over the past 10 years and sexual offence crimes, including rape and sexual assault, decreased by 5.6 percent over the same period.

Housing: Millions still live in shacks

Housing is a sore topic in South Africa, where the minority white population has traditionally owned the majority of the land. It is one of the most visible examples of the stark mismatches that contribute to South Africa being labelled as one of the world’s most unequal countries.

Although approximately eight in 10 South Africans (83.2 percent) live in formal homes, at least 2.2 million people still live in informal dwellings, including shacks built out of corrugated iron sheets or other scrap material.

Black South Africans, who make up about 80 percent of the population, are disproportionately affected. Under apartheid rule, Black people were dispossessed of their land and forced into “bantustans” (homelands) or crowded slums and hostels, where many died of diseases from the poor conditions there. Although Black people are no longer legally bound to live in such conditions, many remain stuck in inadequate and informal housing.

Land reform was a major principle of the ANC in the fight to end apartheid, but efforts to redistribute land and provide affordable housing to the millions in need continue to fall short three decades later.

Basic services: Unequal access

South Africa is generally water-stressed. The country is highly susceptible to drought from low-average rainfall and a hot climate. Add to that, poor management and unequal distribution of water have meant that access to this crucial resource also varies according to race.

More than 80 percent of South African homes have access to piped water but cuts are regular in some parts, like Limpopo and Mpumalanga provinces. Across the country, it is not uncommon to see homes in wealthy neighbourhoods with clean swimming pools, while in nearby townships, Black people queue at communal water points with their plastic buckets and containers to collect water and then trek home.

Potable water is generally accessible, but not guaranteed for all. According to government data, white, mixed-race and Indian communities have the highest access to safe water – all above 94 percent. In Black homes, the number falls to 86.7 percent.

While electricity access is largely available in both rural and urban areas, the country’s reliance on failing coal-fired power plants has meant electricity supply – for all – has plummeted sharply in recent years.

‘Load shedding’: An ongoing crisis

Eskom, the state-owned electricity provider, has implemented regular power cuts for years to manage the growing demand for energy and prevent grid collapse. The ongoing blackouts are locally referred to as “load shedding”.

In 2023, Eskom, plagued by corruption and mismanagement, imposed record-breaking power cuts totalling 6,947 hours, equivalent to 289 days, resulting in rolling blackouts of about six to 12 hours per day across the country.

The South African Reserve Bank says these power outages cost the economy about 900 million rand ($50m) per day in losses to factories and businesses.

For the past two months, South Africans have enjoyed an uninterrupted electricity supply, marking the longest period without power cuts since 2022. This has led the opposition DA and others to accuse the ANC of playing a power game to win supporters ahead of the election.

The ANC has denied this, with President Cyril Ramaphosa saying in an interview with local radio station 702 that his government has been working with Eskom to revamp and maintain South Africa’s power stations on a programmed basis.

[Al Jazeera]

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  • The Weekend Essay

The petit bourgeois insurrection

Family-owned firms now sit at the heart of America’s fraying democracy.

By William Davies

essay the problem of unemployment

There is an argument that breaks out from time to time between the critics of global capitalism (often represented by left-leaning NGOs) and economists. It starts with the former comparing the size of multinational corporations to that of national economies. So, for example, Microsoft’s market capitalisation is now larger than the GDP of France. At this point an economist is guaranteed to show up to rubbish such comparisons on the basis that they compare a corporation’s “stock” (market capitalisation) with a country’s “flow” (output over the course of a year). The former represents a quoted asset price that may or may not be realised; the latter represents the sum of goods and services that have been sold.

These rhetorical games came of age during the brief period of the “anti-globalisation movement” – the time of the 1999 Seattle protests against the World Trade Organisation and Naomi Klein’s No Logo. That movement spoke to a rising anxiety that, regardless of which measurement tools one used, multinational corporations had acquired a level of autonomy and clout that exceeded that of many nation states. While US car giants were exploiting the Nafta trade deal to move production across the Mexican border, corporations such as Nike and Starbucks seemed intent on flooding every spare corner of public space with their brands, unconstrained by geography or politics. Polemics such as Thomas Frank’s One Market Under God and novels such as Jonathan Franzen’s The Corrections (in which a dotcom start-up seeks to sell Lithuania to investors) expressed a kind of anti-capitalism that resolved largely into a critique of corporate power.

Today, the comparison of financial stocks with productive flows looks a lot more interesting than big-brain economists are willing to admit. Indeed, it is precisely this kind of comparison on which the post-2008 era’s definitive work of political economy, Thomas Piketty’s Capital in the Twenty-First Century , is built. But one key difference is that corporations are no longer such a focal point. Piketty’s memorable proposition, R>G, states that returns on capital typically outstrip growth in income: stocks grow faster than flows, resulting in an exponential trend towards oligarchy. Those returns don’t only manifest in the form of corporate profits or dividends, and may accrue almost invisibly in the form of asset appreciation (especially of real estate) that is not always easy to measure. The mood at the turn of the millennium, that corporations were now bigger or more powerful than states, has given way to a different anxiety: that there is plenty of money out there, but it’s been effectively withdrawn from circulation and stored indefinitely as wealth, evading public scrutiny and taxation. A 2022 Financial Times headline put it most succinctly: “Britain and the US are poor societies with some very rich people.”

To this daunting thought, Melinda Cooper’s Counterrevolution adds a more provocative one: what if this was the plan all along? What if the neoliberal revolution of the past half-century was never really about increasing GDP growth , productivity or industrial profitability, but only ever about nurturing asset appreciation? Critics of various stripes continue to fixate on growth as the central indicator of progress, whether they are bemoaning this obsession (on environmental and social grounds) or complaining that policymakers have failed to deliver enough of it, as everyone from Liz Truss to Rachel Reeves now agrees. Notions of “secular stagnation” and the “long downturn” continue to judge economic performance in terms of productive output. And yet we know from Piketty, or the world depicted in The White Lotus , or a brief glance in any London estate agent’s window that stagnation is not for everyone. It is this combination of “extravagance and austerity” that Cooper seeks to explain politically and historically.

[See also: Thomas Piketty: “The Labour Party is too conservative” ]

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Cooper’s story begins in the United States of the mid-1970s, at a time when it appeared to a variety of critics and stakeholders that capital was scarcely able to grow at all. Inflation ate into the value of assets, while inflation-busting wage agreements squeezed out profits. Taxation on income, capital gains, inheritance and property seemed to devour all prospects for the accumulation of private wealth. From the perspective of conservative intellectuals such as James M Buchanan and sympathetic business lobbies, this was all in the service of an increasingly bloated, over-unionised public sector that drove up public borrowing and destroyed incentives for private-sector investment. The unsustainability of this Keynesian-industrial settlement was demonstrated in the 1970s by the New York City debt crisis and the Californian revolt against property taxes.

Much of what followed is well-known: the election of Ronald Reagan, the monetary “Volcker shock” of high interest rates that gutted the industrial Midwest and generated mass unemployment, along with sweeping tax cuts for high-earners and the wealthy, financial deregulation, and a boardroom fixation on shareholder value. Bill Clinton won the plaudits of his erstwhile critics on the right when in 1998 he achieved the federal government’s first budget surplus since 1970. Neoliberal economic principles became enshrined in the doctrines of the Federal Reserve, which moved under Alan Greenspan from hawkish inflation-busting to an era of cheap money aimed at pumping up asset values. This escalated following the global financial crisis to full-blown monetary financing, in which the Fed underpinned the value of government debt and other financial assets by taking trillions of them on to its own balance sheet. More recently, the conservative counter-revolution has delivered a frightening ideological radicalism in the form of the Tea Party movement, President Trump, the repeal of Roe vs Wade and the 6 January insurrection.

Cooper’s account is distinguished by her emphasis on what those who fretted about the issue in the 1970s referred to as capital formation. At every turn, from the moment that the Ford administration told New York City to “drop dead” in response to its pleas for federal assistance in 1975, through to the Trump tax reforms of 2017, the problem to be solved was of how privately owned capital – in all its forms and at every scale – could grow more rapidly and reliably. On the face of it, this is an unsurprising claim to make about neoliberalism , which has long been theorised by Marxists as a political project waged on behalf of capital to restore the rate of profit. What’s unusual about Counterrevolution and what makes Cooper such an endlessly intriguing scholar (a rare combination of historian, sociologist and economist, but none of these in particular) is the recognition that capital comes in all shapes and sizes, producing exotic political coalitions of hedge funds with small businesses, of speculative property developers and homeowners, that defy conventional class stratification. Once this is understood, the democratic upheavals of the past decade start to make much more sense.

What enables capital to grow and survive over time? Orthodox political economy would suggest that it needs to be invested in productive processes and technologies, for instance through the sale of corporate equities. Cooper shows that, at least in the American context, the pursuit of “capital formation” since the 1970s has been far more devious than this, and far more reliant on the insidious hand of the state. There is both a fiscal and a monetary wing to this project. Fiscally, the ideas of supply-side economics (whose genealogy Cooper traces in detail, and whose influence in Washington DC remains far stronger than is often realised) drove a tax-cutting agenda that didn’t simply put more money into the pockets of the rich but offered a handout to property owners, who were encouraged to blame the public sector for their lack of asset appreciation. One reason why asset appreciation took off in the 1980s was that the owners got to keep more of their capital gains and their inherited wealth.

Monetary policy would eventually prove an even more potent tool for the same purpose. While the Fed had spent much of the 1980s seeking to reduce inflation through driving up unemployment (weakening organised labour at the same time), by the late 1990s, Alan Greenspan was sufficiently reassured that the unions were broken to flood the US economy with cheap money and stand back as it was converted into asset appreciation. While the rising price of labour and goods had been a problem, the rising price of assets – including real estate – “now represented the ideal horizon of Federal Reserve crisis management”. The entire US state had now pivoted towards facilitating asset-price appreciation. Far greater monetary largesse would follow post-2008 in the form of quantitative easing, when the Fed (and the Bank of England) pumped trillions into equities and house prices, while wages stagnated.

Who benefited from all this? Cooper is sensitive to the shifting sands of Reaganism, how it drew on aspects of the New Deal coalition (including some unionised elements) to bring small businesses, factions of the white working class and big business together and set them against fiscal authorities and public-sector workers, using gendered and racial divisions to drive the opposition home. An economic model in which wealth appreciates indefinitely ultimately shores up an institution that Cooper had already addressed in her instant classic of 2017, Family Values . Over time, it is the family and the family-owned business that accumulates wealth and political power in an economy no longer preoccupied with production or productive investment, and where wealth is defended and swelled by whatever means available. Cooper is brilliant and original in her analysis of how the private, family-owned firm now sits at the heart of America’s rapidly fraying democracy, and how it is this entity (and not the publicly traded corporation) that contextualises the descent towards 6 January and beyond.

Large private businesses, such as Koch Industries, offer their owners a level of political autonomy as campaign donors and “philanthropists” that shareholder-owned companies do not. These have become vehicles for dynastic, oligarchical power, that extends its reach via attacks on all forms of property tax. At the other end of the spectrum, the small family-owned firm sat at the heart of the Tea Party movement. Feeling squeezed between “big business” and “big government”, these modest private companies exhibit the petit bourgeois resentment that has long been recognised as a potent ingredient of radicalisation on the right. The combination of private, dynastic wealth with radical Christianity has injected further toxicity into movements that, post-2008, gave up claiming to favour democracy at all.

But what is perhaps most striking about Counterrevolution is the economic sector present in virtually every scene in the play: real estate. Cooper is too fixated on the ideas, intellectuals and political protagonists that drove the rise of the asset economy to suddenly mutate into a geographer or housing studies scholar, but this could almost have been a book about why (in Fredric Jameson’s words) “today, all politics is about real estate”. Cooper shows that the enforced solution to the New York debt crisis involved opening up the city to property developers. Among those who benefited most lavishly from the tax cuts and incentives that followed was a developer called Donald Trump.

The supply-siders reserved their greatest animosity for property taxes. As early as the late 1970s, Greenspan had noticed that rising house prices offered a warped form of Keynesian stimulus: homeowners could remortgage, releasing cash for consumer spending. It was construction workers, organised into small, private businesses, that were at the forefront of Reagan’s blue-collar Republicanism, and most seduced by supply-side populism (and who made a surreal reappearance in the form of the anti-government “Joe the Plumber” during John McCain’s ill-fated 2008 campaign). So dominant was real estate in the US economy that between 2001 and 2005 40 per cent of new private-sector jobs were in residential construction and related sectors such as mortgage brokering. As Margaret Thatcher understood as well as anyone, real estate has a unique ability to remake electoral and class divisions, producing confusions that disorientate us to this day (why is a retired steelworker who purchased his council house assumed to be working class? Why is a teacher struggling to pay their rent considered middle class?).

The status of real estate, housing especially, in contemporary capitalism is so prominent and divisive and sucks up so much of our attention that it can sometimes be hard to get any critical distance on this madness. The vote for Brexit was ultimately a vote by homeowners; rates of depression and anxiety are far higher among renters than among owners; intergenerational relations are being transformed in the desperate hunt for housing security and housing equity. So much now seems to hang on it that it can be hard to find the concepts and narratives to account for this state of affairs. Counterrevolution provides an exemplary history of ideas and elites, but in foregrounding the asset form with which we are most intimately connected, it also offers a crucial history of our unhappy present that makes complete sense.

Counterrevolution: Extravagance and Austerity in Public Finance Melinda Cooper Zone Books, 568pp, £28

Purchasing a book may earn the NS a commission from Bookshop.org, who support independent bookshops

[See also: India’s last election? ]

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  5. Essay On THE PROBLEM OF UNEMPLOYMENT

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  6. Essay on the Problems of Unemployment in India

    essay the problem of unemployment

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  1. Write an essay on Unemployment

  2. Unemployment Essay Writing For 10th And 12th Class In English|बेरोजगारी पर निबंध|

  3. Essay The Problem of Unemployment in India

  4. Unemployment essay in urdu

  5. 25 Quotations for unemployment essay|| Best quotes for essay writing||Class 10 and 12

  6. Every student have one problem,| unemployment| सभी छात्रों का बेरोजगारी एक समस्या| by Rohitraj 😀😀

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  1. Unemployment: Causes, Effects, and Solutions

    Mental health issues: Unemployment can cause stress, anxiety, and depression, which can negatively impact an individual's mental health. Strained relationships and family instability: Unemployment may cause financial strain and tension within families, leading to relationship problems and instability. These effects of unemployment can have ...

  2. Unemployment Essay

    500+ Words Essay on Unemployment. Unemployment is a serious problem among young people. There are thousands of people who do not have any work to do and cannot find work for themselves. Unemployment refers to the situation where a person wants to work but cannot find employment in the labour market.

  3. Understanding Unemployment: Causes, Consequences, and Solutions

    Causes of Unemployment. Economic Fluctuations. Economic fluctuations are a significant contributor to unemployment, which acts as a barometer for the health of a job market. During periods of economic downturn or recession, businesses face declining profits, reduced consumer spending, and often diminishing markets.

  4. Essays About Unemployment: Top 6 Examples and 5 Prompts

    2. What I Learned From Nearly a Year of Unemployment by Becca Slaughter. "I remember feeling embarrassed and powerless. I was angry it wasn't my decision. I was happy I didn't have to go back there, yet I was stressed about not having anywhere to go. Ultimately, I felt an overwhelming sadness that left me terrified.

  5. Scarring Effects of Unemployment: A Meta-analysis

    The overall problem issue results from various factors relating to social, economic, environmental, political and individual elements in an economy. So, to gather both consequences and causes of unemployment, this essay attempts to consider and analyze them separately. Causes of Unemployment

  6. Unemployment

    Unemployment is a complex problem facing many countries presently. The process of reducing unemployment rates can be a daunting process fraught with disappointments. As a summary of the major findings of the research, the major cause of unemployment is lack of information among citizens, and poor governance policies in a country (Arestis & John ...

  7. Unemployment in the United States

    Unemployment is one of the fundamental economic and social problems in the world. Every country once in a while experiences a lack of working places available on the labor market. It could be said that unemployment rate is constantly changing, as it depends on the variety of social and economic factors. It could be assumed that unemployment is ...

  8. Essay on Unemployment: 100 to 300 Words

    Essay on Unemployment in 100 words. Unemployment refers to the condition when individuals, capable and willing to work, are unable to secure gainful employment. It is a pervasive issue across the globe, with varying degrees of impact on societies. Unemployment results in financial instability, and emotional distress, and hampers individual growth.

  9. Unemployment Essay for Students and Children

    500+ Words Essay on Unemployment. Unemployment is a very serious issue not only in India but in the whole world. There are hundreds and thousands of people out there who do not have employment.Besides, the problems of unemployment are very severe in India because of the growing population and demand for jobs.

  10. Lesson summary: Unemployment (article)

    unemployed. a term that describes a person who could be working, and wants to work, but is not working; to be counted as unemployed you must be part of the eligible population, not working, and actively looking for work. unemployment rate. the percentage of the labor force that is unemployed. labor force.

  11. Essay On Unemployment: Helpful Guide To Writing

    Unemployment problem solution essay; Essay on employment and unemployment; Essay on unemployment in America ; Essay on unemployment and its long-term effects; Unemployment essay outline. Whether you are writing a one-page essay on unemployment or a longer well-researched one at the end of the semester, making an outline is an important step you ...

  12. Essay on Unemployment: 150-250, 300-1000 words for Students

    Essay on Unemployment in 150-250 words. Unemployment is a pressing issue that affects individuals and societies globally. It refers to the state of being without a job or a source of income despite actively seeking employment. Unemployment poses significant challenges, both economic and social, for individuals and communities.

  13. The Causes and Impacts of Unemployment Essay

    Essay Writing Service. High unemployment rate in a country leads to social and economic problems in the community as a whole. Economic problems result in less production of goods and services, less distribution of income, loss of tax revenues, fall in GDP rate etc. (www.economywatch.com). Social problems cause's social ills and shows effect ...

  14. Unemployment Essay

    The unemployment rate has climbed up to 27.1% in April. Sure, once the offices are opened, this rate will come down. However, this grim scenario will haunt us for at least one year. The situation in other countries is the same. 30 million people in the US have filed unemployment claims. The unemployment rate, there, is 14.7%.

  15. Essay on Unemployment Sample and Writing Tips

    Unemployment essay: 5 writing tips. 1. Narrow your topic. Unemployment is a complex concept and phenomenon. So, the first thing you should do before starting your essay is to narrow your topic. You can't write an essay about unemployment in general. An essay is a type of paper that requires a concise and narrow topic, such as, for example ...

  16. Education is Not the Cure for High Unemployment or for Income

    The challenge the nation faces as high unemployment persists is not better education and training for those currently unemployed. The problem is a lack of jobs. The huge increase in wage and income inequality experienced over the last 30 years is not a reflection of a shortfall in the skills and education of the workforce.

  17. Unemployment: Causes and Effects

    Unemployment is a significant social and economic problem. Not always positive aspects of enterprise development contribute to a decrease in the percentage of unemployed. The negative impact may be cumulative along with phenomena such as inflation external factors, including the pandemic.

  18. Essay on Unemployment for Children and Students in English

    Unemployment Essay 4 (500 words) Introduction. Unemployment is a serious problem. There are a number of factors including lack of education, lack of employment opportunities, lack of skill, performance issues and increasing population rate that lead to this issue in India.

  19. Unemployment Rate in Santa Clara County, CA (CASANT5URN)

    Persons who were waiting to be recalled to a job from which they had been laid off need not have been looking for work to be classified as unemployed. The unemployment rate is the unemployed percent of the civilian labor force [100 times (unemployed/civilian labor force)]. For more details, see the release's frequently asked questions.

  20. Global unemployment set to decline slightly this year: UN labour agency

    Global unemployment numbers will fall modestly this year, but unequal access to jobs is still a problem worldwide, particularly for women in poorer countries, the International Labour Organization (ILO) said in a new report published on Wednesday. The updated World Employment and Social Outlook report predicts that the global unemployment rate ...

  21. Unemployment Rate in Santa Clara County, CA

    Employed persons are all persons who, during the reference week (the week including the 12th day of the month), (a) did any work as paid employees, worked in their own business or profession or on their own farm, or worked 15 hours or more as unpaid workers in an enterprise operated by a member of their family, or (b) were not working but who ...

  22. 10 Countries with the Highest Youth Unemployment Rates

    Italy experiences high youth unemployment, with rates often exceeding 30%. Structural issues in the economy, including a mismatch between education and labor market demands, play a significant role.

  23. China making youth unemployment a 'top priority'

    The empty seats belied China's stubbornly high youth unemployment rate - a problem so pressing that President Xi Jinping this week told top Communist Party (CCP) cadres it should be a "top ...

  24. 'Unauditable' Delaware unemployment fund brings risk, experts say

    A spokesman at the Delaware Department of Labor said the unemployment fund currently sits at $344 million, down from $385 million last June. While Scott pointed to COVID as one reason for his ...

  25. Stolen money at Delaware labor department prompts investigation calls

    An open government group has asked the Delaware General Assembly to investigate an undisclosed embezzlement problem at the state Department of Labor's Division of Unemployment Insurance.

  26. Unemployment Rate in Santa Clara County, CA

    The unemployment rate is the unemployed percent of the civilian labor force [100 times (unemployed/civilian labor force)]. For more details, see the release's frequently asked questions . Suggested Citation:

  27. South Africa elections 2024: Key issues by the numbers

    General unemployment rates rose slightly late last year from 31 percent to 33 percent during the first quarter of 2024. The problem is particularly poignant among the country's youth, aged 15-34.

  28. The petit bourgeois insurrection

    The Weekend Essay. 1 June 2024. ... While the Fed had spent much of the 1980s seeking to reduce inflation through driving up unemployment (weakening organised labour at the same time), by the late 1990s, Alan Greenspan was sufficiently reassured that the unions were broken to flood the US economy with cheap money and stand back as it was ...