What Are The Socio-economic Consequences Of Unemployment

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What Are The Socio-economic Consequences Of Unemployment
What Are The Socio-economic Consequences Of Unemployment

Video: What Are The Socio-economic Consequences Of Unemployment

Video: What Are The Socio-economic Consequences Of Unemployment
Video: Economic and Social Costs of Unemployment 2024, December
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Unemployment is one of the most pressing problems of any society built on the principles of a free market. But to a greater extent, this phenomenon affects the economies of transition type, which are characterized by the formation of labor and labor markets. The state, which formally guarantees its citizens the right to work, has to overcome the serious socio-economic consequences of unemployment.

What are the socio-economic consequences of unemployment
What are the socio-economic consequences of unemployment

Instructions

Step 1

The social and economic consequences of unemployment are on a par with the problems of poverty and social instability. For most of both developed and developing countries, this phenomenon is turning into a problem that is fraught with the potential danger of growing social tension. As soon as the unemployment rate reaches a critical value, society is brought into an unstable state that threatens social upheaval.

Step 2

One of the most significant negative consequences of unemployment is the sharp rise in crime. Sections of the population deprived of a legitimate source of income are easily criminalized. This is especially true of those representatives of society who lose touch with their usual social environment and declassify. A significant proportion of crimes against property are committed by persons who have lost their jobs and have not found a job.

Step 3

With the growth of unemployment in society, social tension increases. It manifests itself in explicit and latent conflicts between social groups that begin to compete with each other in the labor market. The problem is aggravated by the increase in the number of labor migrants from other regions of the country or from other states, which often results in ethnic conflicts, which, however, have not so much national as an economic basis.

Step 4

The rise in unemployment, as the researchers found, leads to an increase in the number of physical and mental illnesses. This is due to a fundamental change in the lifestyle of those who have lost their jobs. Lack of stable earnings forces people to change their diet and diet; they are not always able to use paid medicine, which leads to the development of chronic diseases. Constant stresses associated with finding a job, in turn, lead to a decrease in the level of mental health of citizens, often resulting in mental illness.

Step 5

Unemployment has a negative impact not only on the material situation of individual citizens, but also on the economy of the state as a whole. It leads to a reduction in production and a decrease in tax revenues to the budget. The state is forced to spend a lot on social benefits for unemployment, which are a burden on the working population. Significant funds and efforts are required to maintain a system for promoting employment of the population, which includes assistance in finding a job, as well as professional retraining of citizens.

Step 6

The positive socio-economic consequences of unemployment, with reservations, include the creation of a significant reserve of labor, which may be needed in the event of a structural restructuring of the country's economy. However, this reserve will be in demand only when the state, not in words, but in deeds, seeks to carry out economic reforms and create new jobs. Otherwise, the concentration of the unemployed will only lead to increased social tension.

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