How Unemployment Has Affected Society

704 Words3 Pages
How Unemployment Has Affected Society Judging from the vastness of the unemployment issue, I may not be the perfect individual to discuss on the topic on “unemployment”. However, I cannot hesitate to air my views about it. In the modern economy that we find ourselves in, unemployment, simply defined as the lack of jobs, can be caused by rapid technological changes, inflation, recessions, abrupt climatic changes, overpopulation, laying off current staff workers and discrimination of the employee based on race, age, ethnicity, religion or class. Although the causes may many enough to write a book, researchers such as those in “Economy Watch” have categorized the unemployment causes into four main groups. That is, cyclical, structural, hardcore and frictional problems. Rapid technological advancements over the years have been received both positively and negatively, although one has to agree that when it comes to employment, many have suffered locally due to these changes. This is because when companies change their systems so as to update functions, they also have to employ skilled workers to cope with them. This consequently means that some individuals in the company have to be laid off so as to make way for the “skilled workers” to handle the company activities. Inflation, describe as a continuous increase in prices, is arguably one of the main causes of unemployment. It is simply said that, when inflation is high, unemployment is low and when inflation is low, unemployment is high. What causes inflation is a hard nut to crack for many economists but to the common man, changes in money supply throughout the world may be a possible answer. Basically, when inflation occurs, prices of common items shoot up demanding higher wages to employees. Most companies are usually not able to cope with these demands and eventually lay off workers so as to maintain steady

More about How Unemployment Has Affected Society

Open Document