Unemployment And Its Effects On Individuals, Families, And The Economy

1028 Words Nov 17th, 2015 null Page
Unemployment has much further-reaching effects on individuals, families, and the economy at large. This is a state of life in which a person does not have a paid employment opportunity and is seeking work. Today hundreds of millions of people are not getting paid, that is roughly corresponding to about seven percent of the world’s population. According to the American Psychological Association, the unemployed face twice the incidence of psychological problems. Among these problems there is high rates of depression, anxiety, and a lack of self-esteem, which can feed into a vicious cycle of decreased confidence and failure to find a job. Frequent reasons for unemployment are most likely involuntary by nature since all people concerned got out of work due to structural or cyclical conditions. These occur when demands in the labor market place cannot be met. Structural unemployment begins from a shift in the economy which makes it very hard for certain segments of the population to find new work or to keep their jobs they have. Economists say that there is a difference between the jobs that are available and the levels of skills of the unemployed. Industrialization in the 18th century or the most recent Digital Revolution are just two examples of structural unemployment when there are advances in an industry. These money and labor saving inventions are replacing workers leading to a decrease in demand for labor.
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