UNEMPLOYMENT

Introduction of Unemployment:

Unemployment occurs when a person is available and willing to work but currently without work.[1] The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of those in the labor force who are unemployed. The unemployment rate is also used in economic studies and economic indices such as the United States' Conference Board's Index of Leading Indicators as a measure of the state of macroeconomics.

Explaination:

(Picture people employed)

Mainstream economics believes in the main that unemployment is inevitable, and a necessary evil to prevent inflation; this is disputed by some schools of heterodox economics. The causes of unemployment are disputed. Keynesian economics emphasizes unemployment resulting from insufficient effective demand for goods and services in the economy (cyclical unemployment). Others point to structural problems and inefficiencies inherent in labour markets; structural unemployment involves mismatches between demand and supply of laborers with the necessary skillset, sometimes induced by disruptive technologies or globalisation. Classical or neoclassical economics tends to reject these explanations, and focuses more on rigidities imposed on the labor market from the outside, such as unionization, minimum wage laws, taxes, and other regulations that may discourage the hiring of workers (classical unemployment). Yet others see unemployment as largely due to voluntary choices by the unemployed and the time it takes to find a new job (frictional unemployment). Behavioral economics highlights phenomena such as sticky wages and efficiency wages which may lead to unemployment.

Definition:
unemployed

A person is said to be "unemployed" if he or

she is looking for work, is willing to work at the prevailing wage, but is unable to find a job. unemployment

Unemployment refers to the condition of being

unemployed, or to the number or proportion of

people in the working population who are unemployed.

Unemployment in Pakistan:

nemployment is one of the major problems of Pakistan. The level of unemployment is moving up. The socio economic system of the country and institutions has failed to provide employment to the increasing labor force. The rate of expansion in industrial sector is very slow. The increasing labor force has not been absorbed. Increasing output of general education institutions is the major cause of educated young mens unemployment. Technical, professional and vocational institutions are limited in number. Nationalization of industrial units very badly affected the investment industrial sector. The private investor shifted their capital to other countries. Employment in the private sector absolutely stopped for many years. The higher growth rate of population is the major causes of unemployment. The population has exceeded the optimum level. The Resources of the country are limited. Employment cannot be provided to the increasing labor force. The cottage industries in rural areas had been faded out by the machine made goods. The artisans have been rendered unemployed. Educated young men like white collar jobs. They do not like to perform manual labor. The higher age of retirement in...

Causes:

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There are a number of causes of unemployment in Pakistan.The most important of these causes is a non stop increasing population. Deteriorating law and order situation has slowed down the tempo of economic activity. Karachi is the biggest industrial base of our country. But investors are reluctant to invest there because of continuous unrest and violence. Our educational system is also responsible for the high unemployment rate among the educated youth. The attitude of our youth towards the choice of a career is also unrealistic and unproductive. They want to get only some white-collar job. Rapid mechanization and computer technology are also causing unemployment. Unnecessary and frequent strikes in factories have compelled the owners to go for automation and such technology as requires less manpower. Lack of infrastructure facilities, especially in the field of energy, telecommunication and transportation also prevent the industrialist from setting up new industries. Large scale smuggling which has flooded the market with cheaper goods poses a serious threat to the development of local industry. Tight bureaucratic control on the economy, inadequate credit facilities and complex tax system are also some important factors that are creating hurdles in the way of private sector investment in industrial projects.

Problem of unemployment:

Main problem of unemployment in Pakistan is that whenever a new technology comes as Software or hardware then all the people starts studying about that. Then at the end, you will see ten thousand students of a particular field against 5 or 10 job vacancies. I remember those days when every one talking about MBA. I have seen many people saying that MBA is good and we will do it. Actually i am talking about those days when MBA was becoming popular. Many people join MBA even without thinking that there are many other fields, and if everyone does MBA then the competition will also be tough and as a result job will be less but applicants will be thousands times more than that. Other reason is that in Pakistan, things are not handled in appropriate manner. Vacancies are less, but job seekers are more than that. Opportunities are not enough, and system of reference is so much indulged

in our society that if a company need some employees then workers of that company will provide some resume to them of their relatives and friends so in this way many people don't get the opportunity to apply for those jobs. I know system of reference is every where in the world, but not to that extend as in our society.

unemployment rate during New Deal:

But as these days software companies are growing and some new companies are starting their business very rapidly so i hope ratio of unemployment will become low soon.

(Attached graph )
Types: (Shapes)

Structural unemployment is a form of unemployment resulting from a mismatch between the sufficiently skilled workers seeking employment and demand in the labor market. Even though the number of vacancies may be equal to the number of the unemployed, the unemployed workers may lack the skills needed for the jobs or may not live in the part of the country or world where the jobs are available. Structural unemployment is a result of the dynamics of the labor market and the fact that these can never be as flexible as, e.g., financial markets.[citation needed] Workers are "left behind" due to costs of training and moving (e.g., the cost of selling one's house in a depressed local economy), plus inefficiencies in the labor markets, such as discrimination or monopoly power.

Frictional unemployment:
involves people in the midst of transiting between jobs, searching for new ones; it is compatible with full employment. It is sometimes called search unemployment and can be voluntary. New entrants (such as graduating students) and re-entrants (such as former homemakers) can also suffer a spell of frictional unemployment. Policies to reduce frictional unemployment include:

educational advice; schooling and training facilities; information on available jobs and workers; combating prejudice (against certain workers, jobs or locations); incentives and regulations (e.g. when the frictionally unemployed receive benefits); relocation of industries and services;

Cyclical or Keynesian unemployment:

Cyclical or Keynesian unemployment, also known as demand deficient unemployment, occurs when there is not enough aggregate demand in the economy. It gets its name because it varies with the business cycle, though it can also be persistent, as during the Great Depression of the 1930s. This is caused by a business cycle recession, and wages not falling to meet the equilibrium level. Cyclical unemployment rises during economic downturns and falls when the economy improves. Keynesians argue that this type of unemployment exists due to inadequate effective aggregate demand. Demand for most goods and services falls, less production is needed and consequently fewer workers are needed, wages do not fall to meet the equilibrium level, and mass unemployment results.

seasonal unemployment:
Periodic unemployment created by seasonal variations in particular industries, especially industries such as construction that are affected by the weather.

Disguised unemployment:
Persons who would like to get a job and would be available for work within two weeks, but have not sought work in the past four weeks are classified as being in disguised unemployment. The reasons for disguised unemployment are giving up job search (discouraged job-seekers) or other reasons such as studying, child care, ill health or other such considerations. This is when people do not have full time employment, but are not counted in the official unemployment statistics. This may include:

People on sickness / disability benefits (but, would be able to do some jobs) People doing part time work.

 People forced to take early retirement and redunancy Disguised unemployment could also include people doing jobs that are completely
unproductive, i.e. they get paid but they dont have a job.

Remedies:

The way of solving unemployment will depend upon its cause METHODS Government support to struggling industries in order to try to save jobs e.g. airline industry Provide more training and education to the unemployed. This could help improve computer skills and communication. These people will become more confident and employable. Make more information available in job centres. Reduce unemployment benefits or cut benefits all together (see below) Try to bring the country out of a recession. The Government needs to try to create demand in the economy. It could; I. Give grants to businesses to produce goods - Have projects such as roadbuilding - Cut interest rates to encourage spending - Cut income tax to encourage spending Suggestions *(Graph attached when Pakistan established )

1) Govt. should make efforts to push economic growth process. For this purpose Economic Revival Package should announce for the revival of industries sector, to stimulate production and investment. 2) Govt. should seriously try to boost exports through broadening the tax base and lowering tariffs. 3) Govt. should announce a package for the development of agriculture sector . 4) Beside this a number of fiscal and monetary measures should take to attract industrialists and particularly foreign investment. 5) More Technical and Vocational training facilities should be provided. In this way unemployed people will get the chance to enhance their skills and become able to earn reasonable income.

6) With a view to reduce educate unemployment, self-employment scheme should be encouraged in true manners.

(Figures in Millions) Sector Agriculture Mining & Manuf. Construction Trade Transport Comm.Soc.Ser. Others Total 1994-95 15.56 03.49 02.40 04.82 01.69 04.75 00.55 33.26 1997-98(E) 16.90 03.79 02.60 05.24 01.83 05.16 00.60 36.12 1998-99(E) 17.37 3.90 2.67 5.39 1.89 5.30 0.62 37.14

Source: Economic Survey 1997-98. (Figures in Millions) Unemployment Labour Force Unemployment Rate(%) Year Population Total Urban Rural Total Urban Rural 1993 1994 1995 1996 1997 1998 1999 116.74 119.39 122.36 125.38 128.42 131.51 134.51 1.53 1.61 1.80 1.85 2.25 2.31 2.36 0.54 0.62 0.68 0.71 0.83 0.86 0.89 0.99 0.99 1.12 1.14 1.42 1.45 1.47 4.73 4.84 5.37 5.37 6.10 6.10 6.10 5.88 6.51 6.90 6.90 7.10 7.10 7.10 4.28 4.22 4.80 4.80 5.70 5.70 5.70

Source: Labour Force Survey 1992-93 to 1996-97.

conclusion

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happy enovirment

The cause of unemployment in society was very important topic. We have to conductive proper survey and collect the data through questionnaire and after completion of the data 24.67% unemployment is due to extreme growth in population and 28.67% non coordination between education and job opportunities. Less investment in technical field is also a reason of unemployment. According to a survey research, we come on this point unemployment is also depend on economic condition of our country. Now a days professional and technical education necessary for our society