Income, labor market standing, work qualities, health, leisure, family, social relationships, security, liberty, moral ideals, and many other factors all contribute to an individual’s well-being. Unemployment is one of the most devastating experiences of the working-age population. The economic and social stability of any society is undermined by unemployment. Societies that fail to offer their people profitable and secure jobs call for political stability, social turmoil, and economic insecurity. There is also a strong connection between unemployment and criminality. This blog aims to analyze the social and economic implications of unemployment.
The socio-economic consequences of Pakistan’s high unemployment rate can be seen in the dramatic rise in crime. Robberies, dacoities, and money abductions are now becoming a terrifying part of society. The resulting absence of civic peace and rule of law undermines the very foundations of every country’s industrial, commercial, and trade operations. In society, the rate of crime increases when there is unemployment. When people have no income, they can go to any level to survive like stealing, robbery, and murder.The majority of crimes are committed by unemployed and poor people.
The rate of crime tends to climb when unemployment rates grow. According to a 2016 study published in the Journal of Quantitative Criminology, those who are unemployed for socially unacceptable reasons and do not want to look for work are more likely to commit burglary or robbery.
The rate of unemployment is economic-dependent. According to the United Nations report: economic policy plays an essential part in helping to control the unemployment rate. The unemployment rate is considered low in industrialized countries like the United States of America and Europe, as many people work in agriculture and are self-employed. Unemployment occurs in countries where there are fewer self-employed people and a larger population with fewer resources.
In nations where people are not self-employed, such as Pakistan, unemployment harms the economy since productivity falls below the standard level. When unemployment in the country is high, the government must have an additional borrowing burden since productivity decreases and the people consume fewer goods and services. Not only do the unemployed use less, but the workers have poor buying power since they are afraid of their job losses. Unemployed people are not working, but they also claim government assistance, and this is an additional expense for the economy as a whole.
Unemployment in the family creates financial hurdles. People cannot satisfy their financial obligations on time, and it frustrates the family, leading to tensions and suicides as well as other psychological problems. Unemployment results in poor living standards because job competitiveness will rise, and people will be able to accept lower wages and their living standards would decline owing to low incomes. If the economy faces the problem of unemployment, the insecurity of current employees increases owing to fear or instability in their positions.
It is not just the government’s job to take action to reduce unemployment, but even people must take steps to resolve this problem. There are many modifications to be made by people to emerge from this circumstance. They can make proper changes, such as debt adjustments, expend their liquid assets when required, reduce their costs and also encourage other family members to pursue occupations to compensate for income creation without taking precipitous decisions, such as suicide and depression. People must develop their capabilities and take part inadequate counseling and training to improve performance and to improve their talents. With the support of their family members, they have to consider self-employment. This also enhances their living standards.
For any economy, unemployment is a grave problem. It creates adverse effects for unemployed persons because they are jobless and are facing worse prospects of finding new jobs. However, initiatives to improve productivity and living standards must be taken for the general development of the economy, government and individuals.