Unemployment definition and its impact on society

While a limited number of unemployed individuals may not have a substantial impact on society, a significant surge in unemployment rates within a community can have profound and far-reaching consequences for individuals and society as a whole. 

What are the most important facts about unemployment? And what are its adverse effects on society?

Key employment facts

Unemployment serves as a critical economic indicator for countries. An increase in unemployment usually correlates with a potential decline in the country's overall GDP. Therefore, many countries use unemployment rates and related reports or analyses to understand their economic situation better.

There are several types of unemployment, but the two most common are voluntary and involuntary unemployment. Voluntary unemployment occurs when an individual willingly leaves their job, regardless of the reasons. On the other hand, involuntary unemployment occurs when a person is jobless despite being able and willing to work. This type of unemployment typically happens due to layoffs or circumstances beyond the individual’s control, necessitating the search for a new job.

One of the most common measurements of unemployment is the unemployment rate, often calculated in accordance with the international labour standards set by the International Labour Organisation (ILO). This rate is determined by dividing the number of job seekers by the total labour force and multiplying the result by 100. It is essential to note that the labour force includes both employed and unemployed individuals. However, the method of calculating this rate may vary slightly between countries, and some definitions or clarifications may be required for certain terms, such as “unemployed person” and “labour force”.

Most countries follow three main criteria to classify an individual as unemployed. These criteria include not having a paid job, actively seeking one, and being available to start work immediately upon receiving a job offer. Unemployment also includes other categories, such as individuals who have stopped searching for a job due to a lack of hope or those who work part-time but prefer full-time employment.

It is noteworthy that the unemployment rate calculation generally excludes individuals who have left the labour market due to retirement, as well as those who have chosen to leave their jobs to pursue higher education and acquire new skills. Additionally, people with physical or mental disabilities are not considered part of the active workforce, as they often require special support or customised employment contracts due to their health conditions.

The societal impact of unemployment 

Unemployment has a significant impact on society's economy. In regions with high unemployment rates, there is often a noticeable shortage of job openings, a rise in poverty rates, and a decline in the overall quality of life, including housing and living conditions. These factors can profoundly impact individuals' well-being. On the other hand, governments grappling with the economic repercussions of unemployment struggle to provide basic and recreational facilities to their citizens. This leads to a reduction in the scope of public services offered.

A study conducted by the Social Services Department, affiliated with the Sharjah Emirate, on the "Causes and Effects of Unemployment" highlighted the overall negative social effects of unemployment on a global scale. According to the study, the rise in unemployment rates can lead to an increase in crime rates, violence, extremism, social disintegration, and aggressive behaviour. Under such circumstances, some individuals may resort to criminal activities to obtain income after losing their jobs or failing to secure employment, resulting in a complete loss of financial stability. 

Youth are particularly vulnerable to the effects of unemployment, as it often influences their decision to get married. Financial instability and the inability to bear the costs and responsibilities can lead to delays or even a disinterest in marriage. This, in turn, will impact the girls as well, increasing the social pressure on both parties.

Moreover, unemployment can make individuals more prone to social problems, resulting in their isolation and inability to take on community responsibilities. Consequently, they may struggle to maintain a sense of belonging and develop a distorted perception of society. 

Unemployment often gives rise to a range of intricate and interconnected social problems, where one issue can be a catalyst for another. As a result, some emerging problems cannot be considered as direct consequences of unemployment. For instance, the poverty that unemployment causes can have a profound impact on various social aspects, leading to an increase in domestic violence and divorce and a decline in the overall health and nutritional standards of families. Struggling to meet basic needs, including housing, food, and healthcare, can negatively impact a family’s quality of life and limit their opportunities, further compounding the societal challenges at large. 

In conclusion, despite highlighting the negative impacts of unemployment on society, it is also necessary to recognise that opportunities for improvement and development are always present. Challenges can serve as opportunities for change and growth, inspiring innovation and creativity. Many countries address unemployment by developing specialised employment and training programs, encouraging entrepreneurship, and supporting businesses to create new job opportunities. These initiatives empower young people and job seekers to enhance their skills and employment prospects. 

Moreover, individuals have a pivotal role in combating unemployment by continuously developing their skills, proactively seeking job opportunities that align with their qualifications and experiences, and exploring the potential of entrepreneurship. By taking these steps, individuals can improve their job prospects and stimulate the local economy.

References

[1] dictionary.cambridge.org, unemployment
[2] investopedia.com, What Is Unemployment? Causes, Types, and Measurement
[3] corporatefinanceinstitute.com, Unemployment
[4] sssd.shj.ae, اجتماعية الشارقة تطلق إصدارها الأول حول "أسباب البطالة وآثارها"
[5] indeed.com, How Unemployment Affects Individuals and the Economy