10 causes of unemployment essay

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Understanding Unemployment: Types, Causes, and Solutions

• Categories: Unemployment

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Published: Feb 12, 2024

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Unemployment

• Hidden unemployment: This refers to cases of unemployment that are not officially recorded. Many instances of unemployment go unreported, and government statistics do not accurately represent the true extent of the problem.
• Cyclical unemployment: This type of unemployment occurs as a result of fluctuations in the economy. During periods of economic downturn, there is a decrease in job opportunities, leading to a rise in unemployment rates.
• Seasonal unemployment: Some jobs are only available during specific seasons and are not available year-round. Individuals working in such seasonal jobs are considered unemployed during the off-season (Abbot, 2010).
• Long-term unemployment: This refers to individuals who have been unemployed for an extended period, usually six months or more. Long-term unemployment can have severe consequences for individuals and society as a whole.
• Underemployment: Underemployment occurs when individuals are employed in jobs that do not fully utilize their skills and qualifications. They are often working in positions below their educational or experiential level.
• Hardcore unemployment: This type of unemployment is caused by personal reasons such as mental, psychological, or physical barriers that prevent individuals from securing employment.
• Structural unemployment: Structural changes in the economy, such as technological advancements or shifts in industries, can lead to job losses and a reduction in work opportunities. This type of unemployment is referred to as structural unemployment.
• Frictional unemployment: Frictional unemployment occurs when individuals become unemployed due to conflicts or incompatibility between two different jobs or occupations.
• Economic growth: Economic growth can have both positive and negative effects on unemployment. While economic growth indicates a thriving economy, it can also lead to a decrease in employment opportunities. As the economy grows, certain industries may become obsolete, resulting in job losses.
• Technology: Technological advancements often lead to job displacement as machines and automation replace human labor. This trend is particularly evident in industries where capital-intensive mechanisms are used, making it more cost-effective to employ machines than humans.
• Seasonal fluctuations: Certain industries, such as agriculture and tourism, experience seasonal variations in demand. During off-peak seasons, workers in these industries may face unemployment.
• Microeconomic policies: Changes in microeconomic policies can impact employment levels. The implementation of new policies may lead to economic uncertainty, causing businesses to reduce their workforce or delay hiring.
• Constraints in economic growth: Economic constraints and uncertainties can discourage companies from hiring new employees. During periods of economic downturn, companies may lay off staff to cut costs.
• Abbot, L. (2010). Theories of the Labour Market and Employment: A Review. Washington: Industrial Systems Research.
• Harris, N. (2001). Business economics: theory and application. London: Butterworth-Heinemann.
• Hooks, G. (2003). Unemployment: Causes and Solutions. New York: Routledge.
• Symes, E. (1995). Unemployment: A Social Analysis. London: Routledge.

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• US & World Economies
• Unemployment

7 Causes of Unemployment

What's Behind Each Type of Unemployment?

Erika Rasure is globally-recognized as a leading consumer economics subject matter expert, researcher, and educator. She is a financial therapist and transformational coach, with a special interest in helping women learn how to invest.

• Frictional Unemployment
• Structural Unemployment

What Causes Cyclical Unemployment?

• Demand-Deficit Unemployment
• Joblessness and Unemployment

Frequently Asked Questions (FAQs)

There are seven causes of unemployment. Four causes create frictional unemployment. This type of unemployment is when employees leave their jobs to find a better one. Two causes create structural unemployment. That is when workers' skills or income requirements no longer match the jobs available. The seventh cause leads to cyclical unemployment.

Frictional and structural unemployment occurs even in a healthy economy. The  natural rate of unemployment  is between 4% and 5%, according to the Federal Reserve. The Bureau of Labor Statistics (BLS) defines unemployed people as those who are jobless and have actively looked for work in the past four weeks as well as those who have been temporarily laid off from a job. If they don't keep looking, the Bureau of Labor Statistics doesn't count them in the labor force.

The Balance

4 Causes of Frictional Unemployment

One cause of unemployment is voluntarily leaving the workforce. Some of the unemployed have saved enough money so they can quit unfulfilling jobs. They have the luxury of searching until they find just the right opportunity. The second cause is when workers relocate. They are unemployed until they find a position in the new town.

The third cause is when new workers enter the workforce. This includes students who graduate from high school, college, or any higher degree program. They look for a job that fits their new skills and qualifications. That is a primary cause of youth unemployment.

The fourth cause is when job seekers re-enter the workforce. These are people who went through a period in their lives when they stopped looking for work. They could have stopped working to raise children, get married, or care for elderly relatives. These four causes are an unavoidable part of the job search process. The good news is that frictional unemployment is usually voluntary and short-term.

2 Causes of Structural Unemployment

Structural unemployment is neither voluntary nor short-term. These next two causes lead to long-term unemployment. The fifth cause is advances in technology. This is when computers or robots replace workers. Most of these workers need more training before they can find a new job in their field.

The sixth cause is job outsourcing. That is when a company moves its manufacturing or call centers to another country. Labor costs are cheaper in countries with a lower cost of living. This situation occurred in many states after  NAFTA  was signed in 1994. Many manufacturing jobs moved to Mexico. It also occurred once workers in China and India gained the skills needed by American companies.

The seventh cause of unemployment is when there are fewer jobs than applicants . The technical term is demand-deficient unemployment. When it happens during the recession phase of the business cycle, it's called cyclical unemployment.  

Low consumer demand creates cyclical unemployment. Company profits fall when demand falls. If companies don't expect sales to pick up anytime soon, they generally lay off workers. The higher unemployment causes consumer demand to drop even more, which is why it’s cyclical. It results in large-scale unemployment. Examples include the financial crisis of 2008 and the Great Depression of 1929.

Raising the Minimum Wage and Demand-Deficit Unemployment

Demand-deficit unemployment sometimes occurs when wages are too high. That's one of the arguments against higher minimum wages. Critics argue that when businesses are forced to pay a higher salary per person, they must let other workers go.

In some price-sensitive industries, that's true. But most companies can pass the cost onto their customers. 

Not All Causes of Joblessness Create Unemployment

If someone gives up looking for work, the BLS does not count them in the unemployment rate. If someone retires, goes back to school, or leaves the workforce to take care of children or other family members, that is not unemployment because they no longer look for work. Even if they would prefer a job, the BLS doesn't count them as unemployed unless they looked in the past month.

People who have searched in the past year, but not the past month, are called marginally unemployed. The BLS considers this the U-5 and U-6 alternative measures of labor underutilization, known more broadly as the “ real unemployment rate .” Some people argue that the government undercounts unemployment by reporting the official rate, rather than the “real” rate.

Key Takeaways

• For the BLS, unemployment is the state in which someone has no job and has been looking for work for the past month. Those who have stopped job searching are not counted as part of the unemployed labor force.
• Unemployment may be classified as either a frictional, structural, cyclical, or demand-deficit type.
• The natural rate of unemployment is between 4% and 5%.
• Unemployment is a key economic indicator. High employment rates can be symptomatic of a distressed economy. Conversely, very low unemployment rates can signal an overheated one.

Who is counted as unemployed?

The BLS defines unemployed workers as those who are out of a job and currently available to work, and who have actively looked for work in the past four weeks. It also includes workers who are temporarily laid off but expecting to return to the workforce, whether they have been actively looking for a job or not.

Who qualifies for unemployment benefits?

To qualify for unemployment benefits, a person must be unemployed "through no fault of their own," have worked during a specific period, have met minimum state wage requirements, and be actively seeking work. These are the minimum federal requirements, but some states have additional requirements.

Congressional Research Service. " Introduction to U.S. Economy: Unemployment ," Pages 1-2.

Federal Reserve Bank of St. Louis. " Noncyclical Rate of Unemployment (NROU) ."

Bureau of Labor Statistics. " Labor Force Characteristics: Unemployment ."

Bureau of Labor Statistics. " Employment and Unemployment Among Youth Summary ."

Council on Foreign Relations. " NAFTA and the USMCA: Weighing the Impact of North American Trade ." 

United States International Trade Commission. " The Size & Composition of U.S. Manufacturing Offshoring in China ," Pages 1-2.

Bureau of Labor Statistics. " Mass Layoff Data Indicate Outsourcing and Offshoring Work ," Page 5.

National Bureau of Economic Research. " Structural/Frictional and Demand-Deficient Unemployment in Local Labor Markets ," Pages 1-2.

Congressional Research Service. " The Increase in Unemployment Since 2007: Is It Cyclical or Structural? " Page 2.

Congressional Budget Office. " How Increasing the Federal Minimum Wage Could Affect Employment and Family Income ."

Bureau of Labor Statistics. " Table A-15. Alternative Measures of Labor Underutilization ."

Library of Congress. " H.R.1876 - Real Unemployment Calculation Act ."

Gallup. " The Big Lie: 5.6% Unemployment ."

Bureau of Labor Statistics. " How the Government Measures Unemployment ."

Benefits.gov. " Unemployment Insurance ."

• 7 Causes of Unemployment 2 of 16

Causes of unemployment

A look at the main causes of unemployment – including demand deficient, structural, frictional and real wage unemployment.

Main causes of unemployment

1. Frictional unemployment

This is unemployment caused by the time people take to move between jobs, e.g. graduates or people changing jobs. There will always be some frictional unemployment in an economy because the information isn’t perfect and it takes time to find work.

• Frictional unemployment

2. Structural unemployment

This occurs due to a mismatch of skills in the labour market it can be caused by:

• Occupational immobilities. This refers to the difficulties in learning new skills applicable to a new industry, and technological change, e.g. an unemployed farmer may struggle to find work in high tech industries.
• Geographical immobilities. This refers to the difficulty in moving regions to get a job, e.g. there may be jobs in London, but it could be difficult to find suitable accommodation or schooling for their children.
• Technological change . If there is the development of labour-saving technology in some industries, then there will be a fall in demand for some types of labour which have been replaced by machines.
• Structural change in the economy. The decline of the coal mines due to a lack of competitiveness meant that many coal miners were unemployed. However, they found it difficult to get jobs in new industries such as computers.
• See: structural unemployment.

3. Classical or real-wage unemployment:

• This occurs when wages in a competitive labour market are pushed above the equilibrium, e.g. at W2 the supply of labour (Q3) is greater than the demand for labour (Q2) leading to unemployment.
• Wages could be pushed above the equilibrium level by minimum wages or trades unions. This is sometimes known as “disequilibrium” unemployment.
• Classical Unemployment

4. Voluntary unemployment

This occurs when people choose to remain unemployed rather than take jobs available. For example, if benefits are generous, people may prefer to stay on benefits rather than get work. Frictional unemployment is also a type of voluntary unemployment as they are choosing to wait until they find a better job.

• Voluntary unemployment

5. Demand deficient or “Cyclical unemployment”

• Demand deficient unemployment occurs when the economy is below full capacity.For example, in a recession aggregate demand (AD) will fall leading to a decline in output and negative economic growth.
• With a fall in output, firms will employ fewer workers because they are producing fewer goods. Also, some firms will go out of business leading to large scale redundancies.
• In recessions, unemployment tends to rise rapidly as firms lay off workers.

This shows the biggest cause of unemployment in the UK has been cyclical factors. During the 1920s, the UK economy experienced deflation and low growth. This was exacerbated by the great depression of the 1930s.

In the post-war period of economic growth, unemployment was low – until the early 1980s recession. The 1980s also saw a rise in the natural rate of unemployment due to supply side (structural factors)

The graph of unemployment also shows the recessions of 1991/92 and 2008/09

• More on demand deficient unemployment

Video on causes of unemployment

Examples of Unemployment

Us unemployment.

This shows unemployment since 2000 in the US. It shows the surge in unemployment after the financial crisis and also the Covid shutdown of early 2020.

European unemployment

After the 2008 financial crash, we see higher unemployment in UK, US, and Eurozone. However, unemployment continues to rise in Eurozone until 2012. This is because

• Eurozone growth was sluggish due to the Euro debt crisis.
• The graph also shows higher structural unemployment in the Eurozone. Even during times of growth, the average unemployment rate is higher. This structural unemployment has been attributed to factors, such as labour market immobilities and excessive labour market regulation.

Debate on demand deficient unemployment

Classical economists emphasise supply-side factors as the main cause of unemployment. They argue that demand deficient unemployment tends to be only short term. However other Keynesian economists emphasise the importance of aggregate demand in determining unemployment.

They argue unemployment can be caused demand deficient factors because

• Wages are sticky downwards; this means workers are not willing to accept a wage cut
• If wages are cut then there is a fall in consumer spending this causes a fall in AD. Therefore this makes the unemployment situation worse.
• Efficiency wage theory. This states that if wages are cut workers become dispirited and work less hard leading to lower output.
• During a recession confidence is low and firms are reluctant to spend money on employing more workers even at a lower wage.
• Keynes said in the long run wages may adjust, but in the long run, we are all dead! In other words, why wait several years hoping wages will adjust downwards to reduce unemployment.

In the 1930s mass unemployment continued until WW2. However, when governments did begin to spend on military expenditure, unemployment fell.

Citation : Tejvan Pettinger. Oxford, UK 21st September 2021

• UK unemployment
• Unemployment amongst ethnic minorities
• Youth unemployment
• Natural rate of unemployment
• Involuntary unemployment

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• School Education /

Essay on Unemployment: 100 to 300 Words

• Updated on  
• Mar 30, 2024

Writing an essay on unemployment provides an opportunity to explore a critical issue affecting societies worldwide. Unemployment, a multifaceted problem, has far-reaching consequences that touch upon various aspects of individuals, families, and nations. In this essay, we will delve into the complexities of unemployment, examine its causes and consequences, discuss government initiatives, and shed light on potential solutions.

Table of Contents

• 1 What is Unemployment?
• 2 Essay on Unemployment in 100 words
• 3 Essay on Unemployment in 200 words
• 4 Essay on Unemployment in 300 words
• 5 Tips to Ace in Writing An Essay

Must Read: The Beginner’s Guide to Writing an Essay

What is Unemployment?

Lack of jobs leads to unemployment. It is a very serious economic and social concern that is happening all around the globe leading to many social ills. This issue is a major one and hence many governments are trying to address it. When people of a nation are employed, that leads to the economic and social well-being of that nation. To address it, the education system needs to be modeled differently so as to increase the employability of people. In democracies, political parties use unemployment as a core issue in their election manifestos.

Essay on Unemployment in 100 words

Unemployment refers to the condition when individuals, capable and willing to work, are unable to secure gainful employment. It is a pervasive issue across the globe, with varying degrees of impact on societies. Unemployment results in financial instability, and emotional distress, and hampers individual growth. Governments and organizations must collaborate to create opportunities for employment through skill development and policy implementation.

Essay on Unemployment in 200 words

Unemployment, a pressing concern globally, stems from multiple factors that hinder the workforce’s engagement in productive activities. It affects both developed and developing nations, contributing to economic imbalances and social disparities. The consequences of unemployment include reduced income levels, increased poverty rates, and strained government resources. Moreover, the psychological toll it takes on individuals and families can be severe, leading to stress, depression, and strained relationships.

Essay on Unemployment in 300 words

The intricate web of unemployment is spun from a mix of causes, ranging from economic fluctuations to structural shifts in industries. Cyclical unemployment, driven by economic downturns, and structural unemployment, resulting from a mismatch between skills and job openings, are widespread forms. Additionally, technological advancements lead to technological unemployment as machines replace human labour.

Unemployment has cascading effects on societies. Diminished purchasing power affects market demand, thereby impacting economic growth. As unemployment rates rise, so does the burden on social welfare programs and the healthcare system. The phenomenon also fuels social unrest and political instability, making it a challenge governments cannot ignore.

Governments worldwide have initiated strategies to tackle unemployment. Skill development programs, vocational training, and entrepreneurship initiatives are designed to equip individuals with market-relevant skills. Furthermore, promoting labour-intensive industries and investing in sectors with growth potential can generate employment opportunities.

In conclusion, unemployment is a complex issue that necessitates a multi-pronged approach. Governments, industries, and individuals must collaborate to alleviate its impact. Effective policy implementation, education reforms, and the cultivation of entrepreneurial spirit can pave the way towards reducing unemployment rates and fostering a more stable and prosperous society.

Tips to Ace in Writing An Essay

Before we dive into the specifics of unemployment, let’s briefly discuss some tips to enhance your essay-writing skills:

• Understand the Prompt: Ensure a clear understanding of the essay prompt to address all its components effectively.
• Research Thoroughly: Gather relevant information from credible sources to build a comprehensive and informed essay.
• Organize Your Thoughts: Create an outline to structure your essay logically, allowing your ideas to flow coherently.
• Introduction and Conclusion: Craft a compelling introduction to engage your readers, and a succinct conclusion to summarize your key points.
• Use Clear Language: Express your ideas using clear and concise language, avoiding jargon or overly complex vocabulary.
• Provide Examples: Illustrate your points with real-life examples to enhance understanding and credibility.
• Edit and Proofread: Revise your essay for grammar, punctuation, and coherence to ensure a polished final draft.

Also Read: Unemployment v/s Underemployment – What’s Worse?

Related Reads:-     

Unemployment refers to the state in which individuals who are willing and able to work are without gainful employment opportunities. It is a condition where individuals seek jobs but are unable to secure them, leading to financial instability and societal challenges.

Unemployment, as discussed in the essay, is a multifaceted issue encompassing the lack of employment opportunities for willing and capable individuals. It explores various forms of unemployment, its causes, far-reaching consequences on economies and societies, and the role of governments in implementing solutions to mitigate its impact.

Unemployment is the term used to describe the situation where individuals of working age are actively seeking employment but are unable to find suitable job opportunities. It signifies a gap between the available workforce and available jobs, often leading to economic and social challenges within a society.

Unemployment emerges as a prominent thread, influencing economic, social, and psychological realms. As we’ve explored in this essay, comprehending the causes and consequences of unemployment is pivotal in devising solutions. Governments, institutions, and individuals must strive collectively to unravel this issue’s complexities and weave a fabric of employment opportunities, stability, and progress. We hope that this essay blog on Unemployment helps. For more amazing daily reads related to essay writing , stay tuned with Leverage Edu .

Manasvi Kotwal

Manasvi's flair in writing abilities is derived from her past experience of working with bootstrap start-ups, Advertisement and PR agencies as well as freelancing. She's currently working as a Content Marketing Associate at Leverage Edu to be a part of its thriving ecosystem.

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Unemployment Essay for Students and Children

500+ words essay on unemployment.

Unemployment is a very serious issue not only in India but in the whole world. There are hundreds and thousands of people out there who do not have employment . Besides, the problems of unemployment are very severe in India because of the growing population and demand for jobs. Moreover, if we neglect this problem then it will be going to become the reason for the doom of the nation.

What is Unemployment?

Unemployment refers to a situation in which a skilled and talented people wanted to do a job. But cannot find a proper job due to several reasons.

Types of Unemployment

Now we know what is unemployment but unemployment does not only mean that the person does not have a job. Likewise, unemployment also includes people working in areas out of their expertise.

The various types of unemployment include disguised unemployment, seasonal unemployment, open unemployment, technological unemployment, structural unemployment. Besides, some other unemployment is cyclic unemployment, educated unemployment, underemployment, frictional unemployment, chronic unemployment, and casual unemployment.

Above all, seasonal unemployment, under unemployment, and disguised unemployment are the most common unemployment that is found in India.

Reasons for Unemployment

In a country like India, there is much reason for a large section of the population for being unemployed. Some of these factors are population growth, slow economic growth , seasonal occupation, slow growth of the economic sector, and fall in the cottage industry.

Moreover, these are the major reason for unemployment in India. Also, the situation has become so drastic that highly educated people are ready to do the job of a sweeper. Besides, the government is not doing his work seriously.

Apart from all these, a large portion of the population is engaged in the agricultural sector and the sector only provides employment in harvest or plantation time.

In addition, the biggest reason of unemployment in India is its vast population which demands a large number of jobs every year which the government and authorities are unable to provide.

Consequences of Unemployment

If things will go on like the current scenario then unemployment will become a major issue. Apart from this, the following things happen in an economy which is an increase in poverty, an increase in crime rate, exploitation of labor, political instability, mental health, and loss of skills. As a result, all this will eventually lead to the demise of the nation.

Get the huge list of more than 500 Essay Topics and Ideas

Initiative by Government

The government has taken the problem very seriously and have taken measures to slowly reduce unemployment. Some of these schemes includes IRDP (Integrated Rural Development Programme), DPAP (Drought Prone Area Programme), Jawahar Rozgar Yojana, Employment Assurance Scheme, NRY (Nehru Rozgar Yojana), Training for self-Employment, PMIUPEP (Prime Minister’s Integrated Urban Poverty Eradication Program), employment exchange, Employment Guarantee Scheme, development of organized sector, small and cottage industries, employment in forging countries, and Jawahar Gram Samridhi Yojana and few more.

Besides, these schemes the government also make some rules flexible, so that employment can be created in the private sector also.

To conclude, we can say that the problem of unemployment in India has reached a critical stage. But, now the government and local authorities have taken the problem seriously and working on it to reduce unemployment. Also, to completely solve the issue of unemployment we have to tackle the main issue of unemployment that is the vast population of India.

FAQs about Unemployment

Q.1 Why there is a problem of unemployment in India? A.1 Due to overpopulation and lack of proper skills there is a problem of unemployment in India.

Q.2 Define Disguised unemployment? A.2 Disguised unemployment refers to a form of employment in which more than the required numbers of people work in industry or factory. And removing some employee will not affect productivity.

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19.4: Causes of Unemployment around the World

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• Page ID 164359

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Learning Objectives

• Explain the nature and causes of unemployment
• Analyze the natural rate of unemployment and the factors that affect it
• Identify how undeveloped labor markets can result in the same hardships as unemployment

We can categorize the causes of unemployment in the world's high-income countries in two ways: either cyclical unemployment caused by the economy when in a recession, or the natural rate of unemployment caused by factors in labor markets, such as government regulations regarding hiring and starting businesses.

Unemployment from a Recession

For unemployment caused by a recession, the Keynesian economic model points out that both monetary and fiscal policy tools are available. The monetary policy prescription for dealing with recession is straightforward: run an expansionary monetary policy to increase the quantity of money and loans, drive down interest rates, and increase aggregate demand . In a recession , there is usually relatively little danger of inflation taking off, and so even a central bank, with fighting inflation as its top priority, can usually justify some reduction in interest rates.

With regard to fiscal policy , the automatic stabilizers that we discussed in Government Budgets and Fiscal Policy should be allowed to work, even if this means larger budget deficits in times of recession. There is less agreement over whether, in addition to automatic stabilizers, governments in a recession should try to adopt discretionary fiscal policy of additional tax cuts or spending increases. In the case of the Great Recession, the case for this kind of extra-aggressive expansionary fiscal policy is stronger, but for a smaller recession, given the time lags of implementing fiscal policy, countries should use discretionary fiscal policy with caution.

However, the aftermath of the Recession emphasizes that expansionary fiscal and monetary policies do not turn off a recession like flipping a switch turns off a lamp. Even after a recession is officially over, and positive growth has returned, it can take some months—or even a couple of years—before private-sector firms believe the economic climate is healthy enough that they can expand their workforce.

The Natural Rate of Unemployment

Unemployment rates in European nations have typically been higher than in the United States. In 2020, before the start of the COVID-19 pandemic , the U.S. unemployment rate was 3.5%, compared with 8.5% in France, 10% in Italy, and 7.1% in Sweden. We can attribute the pattern of generally higher unemployment rates in Europe, which dates back to the 1970s, to the fact that European economies have a higher natural rate of unemployment because they have a greater number of rules and restrictions that discourage firms from hiring and unemployed workers from taking jobs.

Addressing the natural rate of unemployment is straightforward in theory but difficult in practice. Government can play a useful role in providing unemployment and welfare payments, for example, by passing rules about where and when businesses can operate, and assuring that the workplace is safe. However, these well-intentioned laws can, in some cases, become so intrusive that businesses decide to place limits on their hiring.

For example, a law that imposes large costs on a business that tries to fire or lay off workers will mean that businesses try to avoid hiring in the first place, as is the case in France. According to Business Week , “France has 2.4 times as many companies with 49 employees as with 50 ... according to the French labor code, once a company has at least 50 employees inside France, management must create three worker councils, introduce profit sharing, and submit restructuring plans to the councils if the company decides to fire workers for economic reasons.” This labor law essentially limits employment (or raises the natural rate of unemployment).

Undeveloped and Transitioning Labor Markets

Low-income and middle-income countries face employment issues that go beyond unemployment as it is understood in the high-income economies. A substantial number of workers in these economies provide many of their own needs by farming, fishing, or hunting. They barter and trade with others and may take a succession of short-term or one-day jobs, sometimes receiving pay with food or shelter, sometimes with money. They are not “unemployed” in the sense that we use the term in the United States and Europe, but neither are they employed in a regular wage-paying job.

The starting point of economic activity, as we discussed in Welcome to Economics!, is the division of labor, in which workers specialize in certain tasks and trade the fruits of their labor with others. Workers who are not connected to a labor market are often unable to specialize very much. Because these workers are not “officially” employed, they are often not eligible for social benefits like unemployment insurance or old-age payments—if such payments are even available in their country. Helping these workers to become more connected to the labor market and the economy is an important policy goal. Recent research by development economists suggests that one of the key factors in raising people in low-income countries out of the worst kind of poverty is whether they can make a connection to a somewhat regular wage-paying job.

Economist Sir W. Arthur Lewis examined such transitions of labor and the impact on economic development. His core theoretical framework—the dual sector economy—proposes that, essentially, the marginal product of low-skilled workers is greater in the manufacturing sector than it is in the agricultural sector. That’s because most agricultural societies are both mature and have fixed inputs (land, water, and related resources); the marginal product of additional farmers on that land is nearly zero, creating what Lewis termed “surplus workers.” Early-stage manufacturing sectors, however, have great need for low-skilled workers, and can make better use (greater marginal product) of them. Their wages will remain low, but as stated above, the wages are more likely to be consistent and therefore move toward a large-scale transition of the labor force.

We have seen this practically in many nations experiencing a shift in labor, particularly in China. In many regions, it is marked by a level of migration—people leaving rural areas for cities or manufacturing zones. At some point, nations achieve what economists call the Lewis turning point, in which the surplus agricultural labor is fully absorbed into the manufacturing sector. Typically, when this occurs, wages in both agricultural and manufacturing sectors begin to rise in a sustainable manner. Despite massive transformation in the Chinese economy over the past decades, economists dispute whether China has actually reached the Lewis turning point.

Economic transition is not without its downsides. Many manufacturing-focused countries still rely heavily on their agricultural sectors for their own sustenance and as a core part of international trade. As the agricultural sector faces competition from manufacturing, and as people physically leave rural areas, farming economies can suffer downturns and unpredictability. Finally, countries or individual farmers seeking to make up for their missing labor may encourage migration and/or immigration that may cause political or financial conflict.

Causes of Unemployment around the World

Steven A. Greenlaw and David Shapiro

Learning Objectives

By the end of this section, you will be able to:

• Explain the nature and causes of unemployment
• Analyze the natural rate of unemployment and the factors that affect it
• Identify how undeveloped labor markets can result in the same hardships as unemployment

We can categorize the causes of unemployment in the world’s high-income countries in two ways: either cyclical unemployment caused by the economy when in a recession, or the natural rate of unemployment caused by factors in labor markets, such as government regulations regarding hiring and starting businesses.

Unemployment from a Recession

For unemployment caused by a recession, the Keynesian economic model points out that both monetary and fiscal policy tools are available. The monetary policy prescription for dealing with recession is straightforward: run an expansionary monetary policy to increase the quantity of money and loans, drive down interest rates, and increase aggregate demand . In a recession , there is usually relatively little danger of inflation taking off, and so even a central bank, with fighting inflation as its top priority, can usually justify some reduction in interest rates.

With regard to fiscal policy , the automatic stabilizers that we discussed in Government Budgets and Fiscal Policy should be allowed to work, even if this means larger budget deficits in times of recession. There is less agreement over whether, in addition to automatic stabilizers, governments in a recession should try to adopt discretionary fiscal policy of additional tax cuts or spending increases. In the case of the Great Recession, the case for this kind of extra-aggressive expansionary fiscal policy is stronger, but for a smaller recession, given the time lags of implementing fiscal policy, countries should use discretionary fiscal policy with caution.

However, the aftermath of the Recession emphasizes that expansionary fiscal and monetary policies do not turn off a recession like flipping a switch turns off a lamp. Even after a recession is officially over, and positive growth has returned, it can take some months—or even a couple of years—before private-sector firms believe the economic climate is healthy enough that they can expand their workforce.

The Natural Rate of Unemployment

Unemployment rates in European nations have typically been higher than in the United States. In 2006, before the start of the Great Recession , the U.S. unemployment rate was 4.6%, compared with 9% in France, 10.4% in Germany, and 7.1% in Sweden. We can attribute the pattern of generally higher unemployment rates in Europe, which dates back to the 1970s, to the fact that European economies have a higher natural rate of unemployment because they have a greater number of rules and restrictions that discourage firms from hiring and unemployed workers from taking jobs.

Addressing the natural rate of unemployment is straightforward in theory but difficult in practice. Government can play a useful role in providing unemployment and welfare payments, for example, by passing rules about where and when businesses can operate, and assuring that the workplace is safe. However, these well-intentioned laws can, in some cases, become so intrusive that businesses decide to place limits on their hiring.

For example, a law that imposes large costs on a business that tries to fire or lay off workers will mean that businesses try to avoid hiring in the first place, as is the case in France. According to Business Week , “France has 2.4 times as many companies with 49 employees as with 50 … according to the French labor code, once a company has at least 50 employees inside France, management must create three worker councils, introduce profit sharing, and submit restructuring plans to the councils if the company decides to fire workers for economic reasons.” This labor law essentially limits employment (or raises the natural rate of unemployment).

Undeveloped Labor Markets

Low-income and middle-income countries face employment issues that go beyond unemployment as it is understood in the high-income economies. A substantial number of workers in these economies provide many of their own needs by farming, fishing, or hunting. They barter and trade with others and may take a succession of short-term or one-day jobs, sometimes receiving pay with food or shelter, sometimes with money. They are not “unemployed” in the sense that we use the term in the United States and Europe, but neither are they employed in a regular wage-paying job.

The starting point of economic activity, as we discussed in Welcome to Economics! , is the division of labor, in which workers specialize in certain tasks and trade the fruits of their labor with others. Workers who are not connected to a labor market are often unable to specialize very much. Because these workers are not “officially” employed, they are often not eligible for social benefits like unemployment insurance or old-age payments—if such payments are even available in their country. Helping these workers to become more connected to the labor market and the economy is an important policy goal. Recent research by development economists suggests that one of the key factors in raising people in low-income countries out of the worst kind of poverty is whether they can make a connection to a somewhat regular wage-paying job.

Key Concepts and Summary

We can address cyclical unemployment by expansionary fiscal and monetary policy. The natural rate of unemployment can be harder to solve, because it involves thinking carefully about the tradeoffs involved in laws that affect employment and hiring. Unemployment is understood differently in high-income countries compared to low- and middle-income countries. People in these countries are not “unemployed” in the sense that we use the term in the United States and Europe, but neither are they employed in a regular wage-paying job. While some may have regular wage-paying jobs, others are part of a barter economy.

Self-Check Questions

What are the different policy tools for dealing with cyclical unemployment?

If there is a recession and unemployment increases, we can call on an expansionary fiscal policy (lower taxes or increased government spending) or an expansionary monetary policy (increase the money supply and lower interest rates). Both policies stimulate output and decrease unemployment.

Explain how the natural rate of unemployment may be higher in low-income countries.

Aside from a high natural rate of unemployment due to government regulations, subsistence households may be counted as not working.

Review Questions

What are the two types of unemployment problems?

In low-income countries, does it make sense to argue that most of the people without long-term jobs are unemployed?

Critical Thinking Question

Is it possible to protect workers from losing their jobs without distorting the labor market?

Explain what will happen in a nation that tries to solve a structural unemployment problem using expansionary monetary and fiscal policy. Draw one AD/AS diagram, based on the Keynesian model, for what the nation hopes will happen. Then draw a second AD/AS diagram, based on the neoclassical model, for what is more likely to happen.

Retrieve the unemployment data from The World Bank database (http://databank.worldbank.org/data/home.aspx) for India, Spain, and South Africa for 2011-2015. Prepare a chart that compares India, Spain, and South Africa based on the data. Describe the key differences between the countries. Rank these countries as high-, medium-, and low-income countries. Explain what is surprising or expected about this data. How did the Great Recession impact these countries?

Viscusi, Gregory, and Mark Deen. “Why France Has So Many 49-Employee Companies.” Business Week . Last modified May 3, 2012. http://www.businessweek.com/articles/2012-05-03/why-france-has-so-many-49-employee-companies.

Causes of Unemployment around the World Copyright © 2020 by Steven A. Greenlaw and David Shapiro is licensed under a Creative Commons Attribution 4.0 International License , except where otherwise noted.

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Unemployment Essay

500+ words essay on unemployment.

Unemployment is a serious problem among young people. There are thousands of people who do not have any work to do and cannot find work for themselves. Unemployment refers to the situation where a person wants to work but cannot find employment in the labour market. One of the major reasons that contribute to unemployment is the large population of India and the limited availability of resources. In this essay on unemployment, we will discuss all these issues responsible for unemployment in India and how we can overcome this problem. Students must go through this unemployment essay to get ideas on how to write an effective essay on the topic related to unemployment. Also, they can practice more CBSE essays on different topics to boost their writing skills.

Unemployment is measured by the unemployment rate, defined as the number of people actively looking for a job as a percentage of the labour force. The unemployment rate for the year 2013-14 in rural India was 4.7%, whereas it was 5.5% for urban India. In the short term, unemployment significantly reduces a person’s income and, in the long term, it reduces their ability to save for retirement and other goals. Unemployment is a loss of valuable productive resources to the economy. The impact of job loss in rural and regional areas flows through the local community, damaging businesses.

Reason for Unemployment

An unemployed person is one who is an active member of the labour force and is seeking work but is unable to find any work for himself. There are multiple reasons behind the unemployment of a person. One of them is the slow economic growth, due to which jobs in adequate numbers are not created. Excessive dependence on agriculture and slow growth of non-farm activities also limit employment generation. Unemployment in urban areas is mainly the result of substantial rural migration to urban areas. This has also resulted in a labour workforce in cities. The lack of technology and proper machinery has also contributed to unemployment.

The present educational system is based on theoretical knowledge instead of practical work. Thus, it lacks the development of aptitude and technical qualifications required for various types of work among job seekers. This has created a mismatch between the need and availability of relevant skills and training. This results in unemployment, especially among the youth and educated people with high degrees and qualifications. Apart from it, the lack of investment and infrastructure has led to inadequate employment opportunities in different sectors.

Steps to Eliminate Unemployment

Various strategies and proposals have been implemented to generate employment. Many Employment programmes and policies have been introduced and undertaken to boost self-employment and help unemployed people engage in public works. The Government of India has taken several policy measures to fight the problem of unemployment. Some of the measures are the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), National Skill Development Mission, Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Regional Rural Banks (RRBs).

Despite the measures taken by the government, India remains a country experiencing severe unemployment problems. It can be resolved by imparting education in such a way that youth get the necessary skills so as to get employment easily. Setting up various vocational training and vocational courses for undergraduate and postgraduate students will help in finding employment for youth. The government needs to emphasise these courses at the primary level and make them a compulsory part of the curriculum to make students proficient in their early stages of life. Career counselling should be provided within schools and colleges so that students can choose a better career option based on their interests and ability. Government should create more job opportunities for the youth and graduates.

India is a fast-growing economy. There is an enormous scope for improvement in the unemployment sector. The various measures and steps taken by the government to increase the employment rate have succeeded to a great extent. The widespread skill development programmes have gained popularity across the nation. With better enforcement of the strategies, the employment level can be significantly improved. Although, we have to go a long way before we can say that all the people in India will get employment.

We hope this essay on unemployment must have helped students in boosting their essay-writing skills. Keep learning and visiting the BYJU’S website for more study material.

Frequently Asked Questions on Unemployment Essay

Is unemployment still an existing problem in india.

Yes, unemployment is still a serious issue in our country. Steps need to be taken by the government and also by the youngsters in India to improve this situation.

Is it necessary for schoolchildren to be informed about unemployment?

Students at this young age should definitely be informed about this topic as it will motivate them to study and aim for higher scores in exams.

What points are to be added to an essay topic on Unemployment?

Add details about different age groups of people suffering from this state of employment. You can focus on the fact that poverty is an indirect reason for unemployment and vice-versa. Then, suggest steps that can be taken to bring about an improvement in education and increase the percentage of literacy.

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AP®︎/College Macroeconomics

Course: ap®︎/college macroeconomics   >   unit 2.

• Unemployment rate primer
• Natural, cyclical, structural, and frictional unemployment rates
• Worked free response question on unemployment

Lesson summary: Unemployment

• Unemployment
• Types of unemployment and the natural rate of unemployment

Lesson overview

Key takeaways

The labor force participation rate (lfpr), limitations of the unemployment rate, three types of unemployment, the natural rate of unemployment, changes in the natural rate of unemployment (nru), key equations, the labor force:, the unemployment rate (ur).

Common Misperceptions

• Not everyone who is out of work is unemployed. In order to be counted as unemployed you have to be out of work, looking for work, and able to accept a job if one is offered to you. If you are out of work and not looking, then you are considered “not in the labor force” rather than unemployed.
• We tend to think of unemployment as an undesirable thing, but a certain amount of unemployment is actually part of a healthy economy. Structural unemployment occurs when new industries are created and old industries become obsolete. For example, when we moved from using horses and buggies to using cars to get around, this put a lot of buggy makers in the structurally unemployed category.
• Frictional unemployment might not seem very fun, but consider what it means to have zero unemployment—nobody ever looks for a job, they just remain in whatever job they are given! In fact, a number of dystopian novels have been written in which everyone in a society is automatically assigned a fixed career (such as the Divergent series). Those societies have zero frictional unemployment, but they are also quite unpleasant if you are unhappy with that career!
• A decrease in the unemployment rate isn’t necessarily a sign of an improving economy. When people stop looking for jobs and drop out of the labor force as discouraged workers, the unemployment rate will decrease even though the true employment situation hasn’t gotten any better. This is why it is important to look at both changes in the unemployment rate and changes in the labor force participation rate. Looking at both changes let’s you get a more complete idea about changes in the employment situation.

Discussion Questions:

• An inventor in Burginville developed a fantastic new dictation machine that perfectly records speech and turns it into a typed document. Unfortunately, that meant that unemployment increased among typists working in offices. Which type of unemployment is this? Explain. Solution, please. This is structural unemployment because typists skills are no longer desired. The changing structure of office work has resulted in people losing their jobs.
• The nation of Fitlandia has 120 , 000 ‍   people. Of these, 20 , 000 ‍   are children under the age of 16, 72,000 ‍   have jobs, 8,000 ‍   don’t have jobs and are looking for work, and 20,000 ‍   people are retired. Assuming that these are all noninstitutionalized civilians, calculate the labor force participation rate and the unemployment rate. I think I got it. Can I check my work? L F = # Employed + # Unemployed = 72,000 + 8,000 = 80,000 L F P R = L F Eligible Population × 100 % = 80,000 100,000 × 100 % = 80 % U R = # Unemployed # Labor Force × 100 % = 8,000 80,000 × 100 % = 10 % ‍  
• Explain why a decrease in the unemployment rate can actually signal a tough job market.

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Unemployment in the United States Essay

• To find inspiration for your paper and overcome writer’s block
• As a source of information (ensure proper referencing)
• As a template for you assignment

Introduction

Definition of unemployment, current unemployment rate in the united states of america, reasons for unemployment in the united states of america, consequences of unemployment in the united states of america, possible solutions to the issue, works cited.

Unemployment is one of the fundamental economic and social problems in the world. Every country once in a while experiences a lack of working places available on the labor market. It could be said that unemployment rate is constantly changing, as it depends on the variety of social and economic factors. It could be assumed that unemployment is a critical issue in the United States of America, as it has a strong impact on the society and other spheres of everyday life.

Firstly, the essay provides the definition of unemployment. Secondly, it describes a current situation regarding unemployment rate in the United States of America. Thirdly, it focuses on the explanation of reasons for this phenomenon. Fourthly, negative and positive consequences and effect of unemployment on American society are discovered. Moreover, possible solutions to the problem are discussed. Lastly, the conclusions are made.

Unemployment could be defined as an amount of people, who are not involved in any working activities (Gupta 334). However, it has to be mentioned that this definition is vague and unspecified. In order to give a clear understanding of the term a vehement categorization has to be made, as it will help to avoid ambiguity. Firstly, people have to be divided into two groups, as employed and unemployed, where people who are not eligible to perform work tasks such as pensioners and children are excluded (Gupta 334).

The second step is to categorize potential workforce into two groups, such as employed and unemployed (Gupta 334). However, one more distinction has to be made. The unemployed people are divided into two more groups such as involuntary and voluntary (Gupta 334).

It could be concluded that the definition of unemployment includes only a rate of voluntary unemployed population, as other people are considered irrelevant to this phenomenon. Moreover, it could be said that the categorization is necessary, as it helps to avoid ambiguity and confusion while defining the term.

It could be said that high unemployment rate is one of the most important issues, which the United States currently experiences (Tong, Tong, and Tong 75). It could be said that some people, who are not able to find a job increased due to the situation in the world.

However, it could be said the situation regarding unemployment has changed over past several years. It has been noticed that the unemployment rate decreased to 5.4%, as American employers introduced 223,000 job offers in April 2015 (Schwartz par. 2). However, the wages were not dramatically increased due to the decrease in the unemployment rate. Some conservatives claim that delay in salary’s increase occurred due to the weak economic condition of the country and insufficient Obama’s actions (Schwartz par. 8).

American economists predict the unemployment rate will significantly drop by the end of the year and may be lower than 5.4% (Schwartz par. 18). However, it has to be mentioned that a number of people, who are obliged to take part-time jobs, remains high (Schwartz par. 19). It could be concluded that the situation on the American market is relatively better now. However, changes have to be made in order to improve a current condition of the unemployment rate in the United States of America.

One of the primary reasons for high unemployment in the United States of America is a financial crisis (Tong, Tong, and Tong 75). The economic recession causes problems for job seekers, as many enterprises experienced bankruptcy during these years. Moreover, a current situation will remain unchanged, as there are many factors, which have a dramatic influence on it, such as competitive pressure from Europe and China and expensive health care system maintenance (Tong, Tong, and Tong 75).

Another cause of unemployment is “the US government’s neoliberal policies” (Li 218). It could be said that these governmental actions are the primary causes of severe financial conditions, which lead to the increase of unemployment rate in the country. The main goal of neoliberalism is to create “asset bubbles” (Li 218). Despite positive intentions, the creating of ‘bubbles’ leads to structural unemployment, and destruction of any of them leads to the global financial crisis.

Imports to exports ratio is another aspect, which has a strong influence on the development of the high unemployment rates. In case of the United States, a number of imports significantly outnumbers the exports (Tong, Tong, and Tong 75). This factor creates the imbalance in the American economy, weakens a position on the global market, and increases external debt and unemployment rates.

It could be said that all of these factors have a substantial impact on the American economy. However, a combination of all aspects dramatically increases the unemployment rate, as a high correlation between these phenomena can be noticed. Evaluating factors together helps see a full image of the current situation in the United States.

It has to be mentioned that unemployment has not only negative but also positive impacts on American economics. Firstly, it has to be mentioned that a rise in unemployment increases the level of proprietorship in the society (Gohmann and Fernandez 289). American economists have noticed this consequence and actively utilized it to decrease the unemployment rate. The main reason for the popularity of this approach is the fact that proprietorship reduces unemployment by creating new job offers (Gohmann and Fernandez 289).

Firstly, the entrepreneurship occurs, when individuals are unable or experience difficulties while seeking for a new job offer (Gohmann and Fernandez 289). Consequently, they have to establish new businesses and enterprises. In turn, this fact leads to a creation of new products, innovation development, and an establishment of new vacancies. It could be concluded that the unemployment leads to the development of entrepreneurship, which, in turn, leads to the reduction of unemployment.

As for the negative effects, unemployment has an adverse impact on the psychological state of an individual. As basic psychological and social needs such as well-established everyday routine and ability to financially support family members are not satisfied, one experiences negative attitude and depression (Hoye and Lootens 85). It could be said that a person lives in constant stress and feels hopeless until he/she is able to fix this problem.

Unemployment also has adverse effects on the family establishment and social roles. A high interdependence between a rise in unemployment and an increased divorce rate is noticed (Dolen, Weinberg, and Ma 172). Children are the ones, who experience violence, and an amount of attention paid to children has to be increased during seasons of high unemployment (Dole, Weinberg, and Ma 172).

It could be said that this economic phenomenon has an adverse impact on family formation and relationship between its members. Moreover, violence might be a cause of mental and physical trauma among children, and might be a reason for social isolation in future.

There are several solutions to a problem such as a high-quality training, introduction of new jobs, and development of favorable economic and social conditions for the companies (Hong, Hong, and Hong 76). These actions will help to improve a current negative situation on the labor market and provide people with positions. Moreover, a combination of these factors will create favorable conditions for development and sustainability of the enterprises to avoid a high unemployment rate in future.

Lastly, improvements in American political and economic structures have to be made. These changes will help enhance a global reputation. Moreover, the advancements and innovations will help avoid a similar issue in the near future.

In conclusion, it could be said that the situation regarding the unemployment rates has experienced changes in a positive direction. It is not as high as it was before due to the introduction of new job offers. Possible reasons for unemployment were economic and political actions implemented by the government of the United States of America. It might seem that unemployment has only negative effects on society. However, the proprietorship is one of the positive influences of unemployment, which helps create new job opportunities. Furthermore, a current situation is unfixed, as advancements in governmental policies may help decrease the levels of unemployment in the country.

Dole, Willemijn, Charles Weinberg, and Leiming Ma. “The Influence of Unemployment and Divorce Rate on Child Help-Seeking Behavior about Violence, Relationships and Other Issues.” Child Abuse & Neglect 37.2-3 (2013): 172-180. Print.

Gohmann, Stephan and Jose Fernandez. “Proprietorship and Unemployment in the United States.” Journal of Business Venturing 29 (2014): 289-309. Print.

Gupta, Gypuzur. Macroeconomics: Theory and Applications , New Delhi: Tata McGraw-Hill Publishing Company Limited, 2006. Print.

Hoye, Greet and Hanne Lootens. “Coping with Unemployment: Personality, Role Demands, and Time Structure.” Journal of Vocational Behavior 82.2 (2013): 85-95. Print.

Li, Jinhua. “Analysis of High Unemployment Rate in the USA.” World Review of Political Economy 4.2 (2013): 218-229. Print.

Schwartz, Nelson. “U.S. Economy Added 223,000 Jobs in April; Unemployment Rate at 5.4%.” The New York Times 8 May 2015. Web. 25 Aug. 2015.

Tong, Carl, Lee-Ing Tong, and James Tong. “High Unemployment in the United States: Causes and Solutions.” Competition Forum 10.2 (2012): 74-79. Print.

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• Chinese Economy: Issues and Policies
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• Unemployment Essay

Essay on Unemployment

The three basic needs of human beings are - food, home and clothing. All these needs can be properly fulfilled only if a person has money. And to earn this money, the person must be employed, that is, he or she must have a paid occupation. However, there are many people in the world and our country too who have failed to secure a job. As a result, they have an insignificant source of income. This state of joblessness is called unemployment.

Why Unemployment is a Serious Issue?

To live a dignified life, people need to earn money and fulfil their basic needs. Unemployment snatches this right from them and their standard of life gets degraded. 

The lack of money due to unemployment leads to the lack of nutritious food. The health of the unemployed is bound to deteriorate. The children of unemployed people cannot get the proper diet. Hence, they suffer from various illnesses. Their quality of life reduces drastically over time.

An unemployed parent cannot give proper education to his child. As a result, the child too will not be able to get a good job once he grows up. Thus, unemployment breeds unemployment.

Unemployment and Social Instability

An unemployed person is open to doing socially unacceptable work to get money. Thus, very often in a society where there are a huge number of unemployed people, there will be a great proliferation of thieves, snatchers, bank-robbers and much more serious anti-social elements. 

Covid-19 & Unemployment in India and the World

In March 2020, India entered into lockdown to stop the spread of Coronavirus. While the lockdown was effective, hundreds of people got jobless because of the prolonged shutdown of the offices. The unemployment rate has climbed up to 27.1% in April. Sure, once the offices are opened, this rate will come down. However, this grim scenario will haunt us for at least one year.

The situation in other countries is the same. 30 million people in the US have filed unemployment claims. The unemployment rate, there, is 14.7%. In the UK the number of unemployment claims has shot up by 70%.

How Can We Come Out of The Muck?

1. Self-Dependence

As the Prime Minister of India proclaimed, the Indians need to be self-dependent. We need more vocational training. Gone are the days when being employed meant being an engineer or a doctor. A farmer is an employed person. He produces his food and that of the others. There is no shame in being a farmer. We have to stop depending on foreign countries for IT work - Let us open more startups. Why do we depend on China for Diwali firecrackers or Holi colors - We can make them ourselves. Self-help is the best help.

2. Shifting The Manufacturing To India

To create more jobs, India needs to make more manufacturing hubs in the country. Let us not just assemble the Smartphone parts, let us scour the mineral-rich country and take out silicon to make circuit boards.

3. Educating The Women 

There is a real connection between the lack of education and unemployment. To educate the children of the country, we first need to educate the women of the country. Only then can the children be educated properly.

4. Stopping Politics Based On Religion And Region

Stopping petty politics is the need of the hour. The politicians need to work in a concerted way to make Indians employed.

As Charlie Chaplin said, there is no glory in poverty. Let us not pride ourselves on being compromising. Let us remain hungry for a better life. Let’s get employed.

FAQs on Unemployment Essay

1. What are the types of unemployment prevalent in the world?

Unemployment is a serious issue across the globe and is of four major different types, that is, demand deficient unemployment, frictional unemployment, structural unemployment, and voluntary unemployment.

Demand deficient unemployment: it is the biggest form of unemployment occurring generally during a recession. A recession is a period when the demand for a certain product in the market decreases, and in reaction to that company reduces its production and cuts down on the workforce.

Frictional unemployment: it is a stage of unemployment where the worker by his own will is searching for a job that is more suitable for his/ her skills and also pays him equal to or more than what he was getting in his previous workplace.

Structural unemployment: In this particular unemployment, geographical location acts as a barrier or the skill set of a worker is not following the skills desired by the jobs available in the market.

Voluntary unemployment: this type of unemployment is by the will of the worker because the worker leaves his/ her job on his own because the pay he is getting is less than his cost of living.

2. What are the causes of unemployment?

Unemployment is a global concern across the globe. Unemployment can be due to any possible reason. Unemployment doesn’t need to be from the employer side only, it can even be from the demand side, that is the demand of the product is low, therefore production is reduced due to which the workforce is also cut down. Unemployment is also from the worker side, that is, the current job doesn't pay him well according to his skill set or the current job is not much of his desired skills. In both these cases, the worker himself leaves his job.

3. What is meant by long-term unemployment and short-term unemployment?

Long-term unemployment refers to the phase of unemployment that lasts for more than 27 weeks, that is 189 days. Short-term unemployment refers to a state where the individual is not unemployed for more than a month and gets a new job very quickly. Long-term unemployment is very dangerous as compared to short-term unemployment and has adverse effects on the economic condition of an individual because of obvious reasons. The main effects of long-term unemployment on an employee are:

There is a significant decrease in the net worth reported in almost 56% of the long-term unemployment cases.

Unemployment not only affects the financial status but family relations as well, 46% of the cases of unemployment experienced strained family relationships.

Unemployment also poses an adverse effect on the career growth of individuals. Almost 43% of the long-term unemployed have observed a drastic effect on their ability to achieve their desired career goals.

Apart from financial and effect on career, long-term unemployment also affects the self-respect of individuals that was reported among approximately 38% of cases of long-term unemployment. Out of these 38% cases, 24% cases required professional help to come back to normal.

4. What are the major reasons that cause unemployment?

Unemployment can persist in a country due to many different reasons. 

One of the main reasons for unemployment is population growth because an exponential increase in population has given rise to higher rates of unemployment. After all, the number of people looking for a job is increasing but the jobs available in the market are constant or are not increasing significantly as compared to the rate of population growth. 

Due to the rapid growth of technology on a global scale, most of the work that was done through human interference is now carried out through machines and technologies. The advancement in technology has completely replaced the unskilled and low-skilled labourers in factories and companies. All factories now prefer technology over labour simply because technologies are more accurate and fast. 

Lack of education and desired skills is another major cause of unemployment. Currently, with technologies driving the world, the demand for skilled and educated workers has increased and the employment opportunities for people without adequate education have decreased, raising the unemployment rate of the country. 

Also, the rising pay scale sometimes makes it difficult for companies to hire employees and pay them the optimum salary.

5. What are the initiatives taken by the government to deal with increasing rates of unemployment?

The government has taken the issue of unemployment very seriously. There are various programs, schemes, and initiatives taken by the government to deal with this situation efficiently. Some of the schemes started by the government to reduce unemployment are Integrated Rural Development Program (IRDP), Drought Prone Area Program (DPAP), Employment Assurance Scheme, Jawahar Rozgar Yojna, Nehru Rozgar Yojna (NRY), Prime Minister’s Integrated Urban Poverty Eradication Program (PMIUPEP), Jawahar Gram Samridhi Yojna, employment guarantee scheme, employment exchange, promoting small and cottage industries and development of the organized sector. There are many more schemes launched by the government apart from the ones mentioned here. Also, apart from schemes, the government has launched training for self-employment and skill India program, to help individuals learn skills which can help them in finding a satisfactory job for themselves and their families.

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Unemployment: Types, Causes & Consequences

It refers to the situation where an individual actively seeking employment is unable to secure a job. It is often used as an indicator of overall economic well-being. The National Statistical Office (NSO) defines employment and unemployment based on specific activity statuses:

The combination of employed and unemployed individuals forms the labor force, and the unemployment rate is calculated as the percentage of the labor force without work.

Types of Unemployment

Causes of Unemployment in India

This can be attributed to various factors, both structural and cyclical. Here are some of the major causes:

• Population Growth: The supply of labor surpasses the available job opportunities, leading to higher unemployment rates.
• Lack of Skill Development: There is often a mismatch between the skills possessed by the workforce and the skills demanded by the industries, resulting in high unemployment rates, particularly among the youth.
• Slow Industrial Growth: Limited investment in industries can lead to fewer job opportunities, exacerbating the existing situation.
• Agricultural Dependence: Overdependence on agriculture, coupled with limited diversification into other sectors, contributes to high unemployment rates.
• Technological Advancements: As technology replaces manual labor, certain jobs become obsolete, leaving workers unemployed.
• Economic Disparities: Some areas lack adequate infrastructure, industries, and job opportunities, leading to higher unemployment rates in those regions.
• Inadequate Education System: The education system in India often struggles to provide practical skills and job-oriented training, leading to a gap between education and employment.
• Informal Sector Dominance: A significant portion of employment in India is in the informal sector, which lacks job security, social security benefits, and stable income. Informal sector workers face uncertain employment prospects, contributing to overall unemployment.

It’s important to note that the causes are multifaceted, and addressing the issue requires comprehensive strategies that address education and skill development, promote industrial growth, encourage investment, and create an enabling environment for job creation.

Consequences of Unemployment

Being unemployed in India can have several consequences on individuals and society as a whole. Here are some of the common consequences:

• Financial Difficulties: This leads to a lack of regular income, making it difficult for individuals to meet their basic needs and sustain a decent standard of living.
• Reduced Purchasing Power: It decreases personal purchasing power, as individuals have limited or no income to spend on goods and services.
• Social Stigma and Psychological Impact: It can result in social stigma and a sense of social exclusion. Individuals may face criticism, low self-esteem, and psychological stress due to the inability to find work.
• Increased Inequality: The lack of job opportunities and income disparities can widen the gap between the rich and the poor, leading to social unrest and dissatisfaction.
• Brain Drain: Qualified professionals may seek employment opportunities abroad, causing a loss of skilled workforce and hindering the country’s overall development.
• Social Unrest: Frustrations arising from a lack of jobs can manifest in protests, strikes, and demonstrations, demanding better employment opportunities and government intervention.
• Economic Burden: The government has to bear the burden of providing social welfare programs, unemployment benefits, and job creation initiatives. Additionally, the loss of productive human capital hampers economic growth and development.

Government Policies to Address Unemployment

The Government of India has taken several measures:

• One such initiative is the Mahatma Gandhi National Rural Employment Guarantee Scheme . Under this scheme, unemployed individuals are guaranteed 100 days of employment in a year. It has been implemented in 200 districts and will be expanded to 600 districts. People working under this scheme receive a daily wage of 150 rupees.
• To tackle disguised unemployment, where there are more people employed than necessary, the government has focused on sectors other than agriculture. The surplus labor from agriculture has shifted to industries like small-scale manufacturing and emerging service sectors such as biotechnology and information technology.
• The National Career Service Scheme has been initiated by the government and includes a web portal called the National Career Service Portal. Job-seekers and employers can use this platform to search for and update job information. It covers both private and contractual job opportunities in the government sector.
• The National Rural Employment Programme aims to provide equal job opportunities to people in rural areas across the country. This helps reduce the disparity in personal finances between rural and urban areas and prevents excessive migration to urban areas, which can strain urban management.
• The Deen Dayal Antyodaya Yojana is a scheme implemented by the Ministry of Rural Development. It aims to support the poor by providing them with skills recognized by industries. The goal is to alleviate urban and rural poverty by equipping individuals with the necessary skills to find well-paying jobs.

The unemployment rate in India inched higher to 7.45% in February 2023, taking the total number of unemployed in the country to 33 million. India needs to make dedicated efforts in order to decrease the number of unemployed people. By following a comprehensive approach including skilling of people, better education, increased focus on labor-intensive sectors, etc. India will be able to decrease the unemployment rate substantially.

Frequently Asked Questions (FAQs)

What are the reasons for unemployment in india.

Reasons include a growing population, lack of quality education and skill development, inadequate job opportunities, slow economic growth, and insufficient investment in certain sectors.

What is the Unemployment Rate last 10 years?

The unemployment rate in India over the last 10 years has fluctuated. It is influenced by various factors, such as economic conditions, government policies, and demographic changes.

How many People are Unemployed in India?

The number of unemployed people in India also fluctuates over time. Accurate and up-to-date data would be needed to provide an exact figure. However, India has faced significant challenges in addressing the issue due to its large population and the aforementioned reasons.

What are the Effects of Unemployment on Our Society?

The effects on society include a strain on public finances, reduced consumer spending, increased dependence on social welfare programs, reduced social cohesion, and a potential increase in social unrest and crime. It can also lead to a loss of human capital and potential economic growth.

What are the Effects of Unemployment on the Indian Economy?

It negatively impacts the Indian economy by reducing productivity, hindering economic growth, increasing the fiscal burden on the government, limiting investment and consumption, and exacerbating poverty and income inequality. It also hampers skill development, reduces innovation and entrepreneurship, and leads to underutilization of resources.

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Unemployment in India

• 03 Apr 2019
• 16 min read
• GS Paper - 3
• Growth & Development
• Skill Development
• Human Resource

Last Updated: October 2022

For Prelims: Types of Unemployment in India, Support for Marginalised Individuals for Livelihood and Enterprise (SMILE), PM-DAKSH (Pradhan Mantri Dakshta Aur Kushalta Sampann Hitgrahi), Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Start Up India Scheme.

For Mains: Types of Unemployment in India, Causes and solutions of unemployment in India.

Why in News?

According to data from the Centre for Monitoring Indian Economy (CMIE) , India’s unemployment rate touched a four-month high of 7.9% in December 2021.

What is Unemployment?

• Unemployment occurs when a person who is actively searching for employment is unable to find work.
• Unemployment is often used as a measure of the health of the economy. The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force.
• Working (engaged in an economic activity) i.e., 'Employed'.
• Seeking or available for work i.e., 'Unemployed'.
• The first two constitute labour force and the unemployment rate is the percentage of the labour force that is without work.
• Unemployment rate = (Unemployed Workers / Total labour force) × 100

What are the Different Types of Unemployment in India ?  

• It is a phenomenon wherein more people are employed than actually needed.
• It is primarily traced in the agricultural and the unorganised sectors of India.
• It is unemployment that occurs during certain seasons of the year.
• Agricultural labourers in India rarely have work throughout the year.
• It is a category of unemployment arising from the mismatch between the jobs available in the market and the skills of the available workers in the market.
• Many people in India do not get job due to lack of requisite skills and due to poor education level, it becomes difficult to train them.
• It is a result of the business cycle, where unemployment rises during recessions and declines with economic growth.
• Cyclical unemployment figures in India are negligible. It is a phenomenon that is mostly found in capitalist economies.
• It is a loss of jobs due to changes in technology.
• Frictional Unemployment, also called Search Unemployment, refers to the time lag between the jobs when an individual is searching for a new job or is switching between the jobs.
• In other words, an employee requires time for searching for a new job or shifting from the existing to a new job, this inevitable time delay causes frictional unemployment. It is often considered voluntary unemployment because it is not caused due to the shortage of jobs, but in fact, the workers themselves quit their jobs in search of better opportunities.
• This means, people working informally, without proper job contracts and thus sans any legal protection. These people are deemed ‘unemployed’ since records of their work are never maintained.
• It is one of the main types of unemployment in India.

What are Some of the Key Terms?

• Unemployment Trap:  It is a situation where unemployment benefits discourage the unemployed to go to work. People find the opportunity cost of going to work too high when one can simply enjoy the benefits by doing nothing.
• The uniform application of this definition results in estimates of unemployment rates that are more internationally comparable than estimates based on national definitions of unemployment.
• This indicator is measured in numbers of unemployed people as a percentage of the labour force and it is seasonally adjusted. The labour force is defined as the total number of unemployed people plus those in civilian employment.

What is the Measurement of Unemployment in India ?  

• Usual Status Approach: This approach estimates only those persons as unemployed who had no gainful work for a major time during the 365 days preceding the date of survey.
• Weekly Status Approach: This approach records only those persons as unemployed who did not have gainful work even for an hour on any day of the week preceding the date of the survey.
• Daily Status Approach: Under this approach, the unemployment status of a person is measured for each day in a reference week. A person who has  no gainful work even for 1 hour in a day is described as unemployed for that day.

What are the Causes of Unemployment?

• Lack of Education/Skills: Huge workforce associated with informal sector due to lack of required education/ skills, which is not captured in any employment data. For ex: domestic helpers, construction workers etc.
• Issues Regarding Joint Families: In big joint families having big business, many such people will be available who are not employed and depend on the joint income of the family.
• It is one of the main causes of unemployment.
• However, Agriculture is underdeveloped in India. Also, it provides seasonal employment.
• When the production of cottage and small industries fall many artisans as well as employees become unemployed.
• Factors like language, religion, and climate are also responsible for low mobility.
• Thus, many people who are willing to work become unemployed due to lack of skills.

What are the Impacts of Unemployment?

• The problem of unemployment gives rise to the problem of poverty .
• Young people, after a long time period of unemployment indulge in illegal and wrong activities for earning money. This also leads to increase in crime in the country .
• Unemployed persons can easily be enticed by antisocial elements. This makes them lose faith in the democratic values of the country.
• It is often seen that unemployed people end up getting addicted to drugs and alcohol or attempts suicide, leading losses to the human resources of the country .
• It also affects the economy of the country as the workforce that could have been gainfully employed to generate resources gets dependent on the remaining working population, thus escalating socioeconomic costs for the State. For instance, 1% increase in unemployment reduces the GDP by 2%.

What are the Steps Taken by the Government?

• Integrated Rural Development Programme (IRDP): was launched in 1980 to create full employment opportunities in rural areas.
• Training of Rural Youth for Self-Employment (TRYSEM): This scheme was started in 1979 with the objective to help unemployed rural youth between the age of 18 and 35 years to acquire skills for self-employment. Priority was given to SC/ST Youth and Women.
• Rural Self Employment Training Institutes/ RSETIs are now managed by Banks with active co-operation from the Government of India and State Government.
• Jawahar Rozgar Yojana (JRY):  By merging the two erstwhile wage employment programme – National Rural Employment programme (NREP) and Rural Landless Employment Guarantee Programme (RLEGP) the Jawahar Rozgar Yojana (JRY) was started with effect from April, 1, 1989 on 80:20 cost sharing basis between the centre and the States.
• It is an employment scheme that was launched in 2005 to provide social security by guaranteeing a minimum of 100 days paid work per year to all the families whose adult members opt for unskilled labour-intensive work.
• This act provides Right to Work to people.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY):  Launched in 2015 has the objective of enabling a large number of Indian youths to take up industry-relevant skill training that will help them in securing a better livelihood.
• It also aims to facilitate bank loans between Rs 10 lakh and Rs. 1 crore to at least one SC or ST borrower and at least one women borrower per bank branch for setting up a greenfield enterprise.

What are some of the Recent Initiatives by the Government?

• Support for Marginalized Individuals for Livelihood and Enterprise (SMILE)
• PM-DAKSH (Pradhan Mantri Dakshta Aur Kushalta Sampann Hitgrahi)
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

What can be the Way Forward?

Promoting Labour Intensive Industries: There are a number of labour intensive manufacturing sectors in India such as food processing, leather and footwear, wood manufacturers and furniture, textiles and apparel and garments.

Special packages, individually designed for each industry are needed to create jobs.

Decentralisation of Industries: Decentralisation of Industrial activities is necessary so that people of every region get employment.

Development of the rural areas will help mitigate the migration of the rural people to the urban areas thus decreasing the pressure on the urban area jobs.

• Entrepreneurs generate employment to many in a country, therefore,  government needs to encourage entrepreneurship among the youth .
• Concrete measures aimed at removing the social barriers for women’s entry and their continuous participation in the job market is needed.
• Government needs to keep a strict watch on the education system and should try to implement new ways to generate skilled labour force.
• Effective implementation of present programs like Make in India, Skill India, Start up and Stand-Up India.
• Drafting National Employment Policy:  There is a need for National Employment Policy (NEP) that would encompass a set of multidimensional interventions covering a whole range of social and economic issues affecting many policy spheres and not just the areas of labour and employment. 
• Enhancing human capital through skill development,
• Creating sufficient number of decent quality jobs for all citizens in the formal and informal sectors to absorb those who are available and willing to work,
• Strengthening social cohesion and equity in the labour market,
• Coherence and convergence in various initiatives taken by the government,
• Supporting the private sector to become the major investor in productive enterprises,
• Supporting self-employed persons by strengthening their capabilities to improve their earnings,
• Ensuring employees’ basic rights and developing an education, training and skill development system aligned with the changing requirements of the labour market.

UPSC Civil Services Examination, Previous Year’s Questions (PYQs)

Q. “While we flaunt India’s demographic dividend, we ignore the dropping rates of employability.” What are we missing while doing so? Where will the jobs that India desperately needs come from? Explain. (2014)

19.3 Causes of Unemployment around the World

Learning objectives.

• Explain the nature and causes of unemployment
• Analyze the natural rate of unemployment and the factors that affect it
• Identify how undeveloped labor markets can result in the same hardships as unemployment

We can categorize the causes of unemployment in the world's high-income countries in two ways: either cyclical unemployment caused by the economy when in a recession, or the natural rate of unemployment caused by factors in labor markets, such as government regulations regarding hiring and starting businesses.

Unemployment from a Recession

For unemployment caused by a recession, the Keynesian economic model points out that both monetary and fiscal policy tools are available. The monetary policy prescription for dealing with recession is straightforward: run an expansionary monetary policy to increase the quantity of money and loans, drive down interest rates, and increase aggregate demand . In a recession , there is usually relatively little danger of inflation taking off, and so even a central bank, with fighting inflation as its top priority, can usually justify some reduction in interest rates.

With regard to fiscal policy , the automatic stabilizers that we discussed in Government Budgets and Fiscal Policy should be allowed to work, even if this means larger budget deficits in times of recession. There is less agreement over whether, in addition to automatic stabilizers, governments in a recession should try to adopt discretionary fiscal policy of additional tax cuts or spending increases. In the case of the Great Recession, the case for this kind of extra-aggressive expansionary fiscal policy is stronger, but for a smaller recession, given the time lags of implementing fiscal policy, countries should use discretionary fiscal policy with caution.

However, the aftermath of the Recession emphasizes that expansionary fiscal and monetary policies do not turn off a recession like flipping a switch turns off a lamp. Even after a recession is officially over, and positive growth has returned, it can take some months—or even a couple of years—before private-sector firms believe the economic climate is healthy enough that they can expand their workforce.

The Natural Rate of Unemployment

Unemployment rates in European nations have typically been higher than in the United States. In 2006, before the start of the Great Recession , the U.S. unemployment rate was 4.6%, compared with 9% in France, 10.4% in Germany, and 7.1% in Sweden. We can attribute the pattern of generally higher unemployment rates in Europe, which dates back to the 1970s, to the fact that European economies have a higher natural rate of unemployment because they have a greater number of rules and restrictions that discourage firms from hiring and unemployed workers from taking jobs.

Addressing the natural rate of unemployment is straightforward in theory but difficult in practice. Government can play a useful role in providing unemployment and welfare payments, for example, by passing rules about where and when businesses can operate, and assuring that the workplace is safe. However, these well-intentioned laws can, in some cases, become so intrusive that businesses decide to place limits on their hiring.

For example, a law that imposes large costs on a business that tries to fire or lay off workers will mean that businesses try to avoid hiring in the first place, as is the case in France. According to Business Week , “France has 2.4 times as many companies with 49 employees as with 50 ... according to the French labor code, once a company has at least 50 employees inside France, management must create three worker councils, introduce profit sharing, and submit restructuring plans to the councils if the company decides to fire workers for economic reasons.” This labor law essentially limits employment (or raises the natural rate of unemployment).

Undeveloped Labor Markets

Low-income and middle-income countries face employment issues that go beyond unemployment as it is understood in the high-income economies. A substantial number of workers in these economies provide many of their own needs by farming, fishing, or hunting. They barter and trade with others and may take a succession of short-term or one-day jobs, sometimes receiving pay with food or shelter, sometimes with money. They are not “unemployed” in the sense that we use the term in the United States and Europe, but neither are they employed in a regular wage-paying job.

The starting point of economic activity, as we discussed in Welcome to Economics! , is the division of labor, in which workers specialize in certain tasks and trade the fruits of their labor with others. Workers who are not connected to a labor market are often unable to specialize very much. Because these workers are not “officially” employed, they are often not eligible for social benefits like unemployment insurance or old-age payments—if such payments are even available in their country. Helping these workers to become more connected to the labor market and the economy is an important policy goal. Recent research by development economists suggests that one of the key factors in raising people in low-income countries out of the worst kind of poverty is whether they can make a connection to a somewhat regular wage-paying job.

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• Authors: Steven A. Greenlaw, David Shapiro
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• Book title: Principles of Macroeconomics 2e
• Publication date: Oct 11, 2017
• Location: Houston, Texas
• Book URL: https://openstax.org/books/principles-macroeconomics-2e/pages/1-introduction
• Section URL: https://openstax.org/books/principles-macroeconomics-2e/pages/19-3-causes-of-unemployment-around-the-world

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Argumentative essay topics for high school.

When writing an argumentative essay, remember to do the research and lay out the facts clearly. Your goal is not necessarily to persuade someone to agree with you, but to encourage your reader to accept your point of view as valid. Here are some possible argumentative topics to try. ( Here are 100 more compelling argumentative essay topics. )

• The most important challenge our country is currently facing is … (e.g., immigration, gun control, economy)
• The government should provide free internet access for every citizen.
• All drugs should be legalized, regulated, and taxed.
• Vaping is less harmful than smoking tobacco.
• The best country in the world is …
• Parents should be punished for their minor children’s crimes.
• Should all students have the ability to attend college for free?
• Should physical education be part of the standard high school curriculum?

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• Schools should require recommended vaccines for all students, with very limited exceptions.
• Is it acceptable to use animals for experiments and research?
• Does social media do more harm than good?
• Capital punishment does/does not deter crime.
• What one class should all high schools students be required to take and pass in order to graduate?
• Do we really learn anything from history, or does it just repeat itself over and over?
• Are men and women treated equally?

Cause-and-Effect Essay Topics for High School

A cause-and-effect essay is a type of argumentative essay. Your goal is to show how one specific thing directly influences another specific thing. You’ll likely need to do some research to make your point. Here are some ideas for cause-and-effect essays. ( Get a big list of 100 cause-and-effect essay topics here. )

• Humans are causing accelerated climate change.
• Fast-food restaurants have made human health worse over the decades.
• What caused World War II? (Choose any conflict for this one.)
• Describe the effects social media has on young adults.

• How does playing sports affect people?
• What are the effects of loving to read?
• Being an only/oldest/youngest/middle child makes you …
• What effect does violence in movies or video games have on kids?
• Traveling to new places opens people’s minds to new ideas.
• Racism is caused by …

Compare-Contrast Essay Topics for High School

As the name indicates, in compare-and-contrast essays, writers show the similarities and differences between two things. They combine descriptive writing with analysis, making connections and showing dissimilarities. The following ideas work well for compare-contrast essays. ( Find 80+ compare-contrast essay topics for all ages here. )

• Public and private schools
• Capitalism vs. communism
• Monarchy or democracy
• Dogs vs. cats as pets

• Paper books or e-books
• Two political candidates in a current race
• Going to college vs. starting work full-time
• Working your way through college as you go or taking out student loans
• iPhone or Android
• Instagram vs. Twitter (or choose any other two social media platforms)

Descriptive Essay Topics for High School

Bring on the adjectives! Descriptive writing is all about creating a rich picture for the reader. Take readers on a journey to far-off places, help them understand an experience, or introduce them to a new person. Remember: Show, don’t tell. These topics make excellent descriptive essays.

• Who is the funniest person you know?
• What is your happiest memory?
• Tell about the most inspirational person in your life.
• Write about your favorite place.
• When you were little, what was your favorite thing to do?
• Choose a piece of art or music and explain how it makes you feel.
• What is your earliest memory?

• What’s the best/worst vacation you’ve ever taken?
• Describe your favorite pet.
• What is the most important item in the world to you?
• Give a tour of your bedroom (or another favorite room in your home).
• Describe yourself to someone who has never met you.
• Lay out your perfect day from start to finish.
• Explain what it’s like to move to a new town or start a new school.
• Tell what it would be like to live on the moon.

Expository and Informative Essay Topics for High School

Expository essays set out clear explanations of a particular topic. You might be defining a word or phrase or explaining how something works. Expository or informative essays are based on facts, and while you might explore different points of view, you won’t necessarily say which one is “better” or “right.” Remember: Expository essays educate the reader. Here are some expository and informative essay topics to explore. ( See 70+ expository and informative essay topics here. )

• What makes a good leader?
• Explain why a given school subject (math, history, science, etc.) is important for students to learn.
• What is the “glass ceiling” and how does it affect society?
• Describe how the internet changed the world.
• What does it mean to be a good teacher?

• Explain how we could colonize the moon or another planet.
• Discuss why mental health is just as important as physical health.
• Describe a healthy lifestyle for a teenager.
• Choose an American president and explain how their time in office affected the country.
• What does “financial responsibility” mean?

Humorous Essay Topics for High School

Humorous essays can take on any form, like narrative, persuasive, or expository. You might employ sarcasm or satire, or simply tell a story about a funny person or event. Even though these essay topics are lighthearted, they still take some skill to tackle well. Give these ideas a try.

• What would happen if cats (or any other animal) ruled the world?
• What do newborn babies wish their parents knew?
• Explain the best ways to be annoying on social media.
• Invent a wacky new sport, explain the rules, and describe a game or match.

• Imagine a discussion between two historic figures from very different times, like Cleopatra and Queen Elizabeth I.
• Retell a familiar story in tweets or other social media posts.
• Describe present-day Earth from an alien’s point of view.
• Choose a fictional character and explain why they should be the next president.
• Describe a day when kids are in charge of everything, at school and at home.

Literary essays analyze a piece of writing, like a book or a play. In high school, students usually write literary essays about the works they study in class. These literary essay topic ideas focus on books students often read in high school, but many of them can be tweaked to fit other works as well.

• Discuss the portrayal of women in Shakespeare’s Othello .
• Explore the symbolism used in The Scarlet Letter .
• Explain the importance of dreams in Of Mice and Men .
• Compare and contrast the romantic relationships in Pride and Prejudice .

• Dissect the allegory of Animal Farm and its relation to contemporary events.
• Interpret the author’s take on society and class structure in The Great Gatsby .
• Explore the relationship between Hamlet and Ophelia.
• Discuss whether Shakespeare’s portrayal of young love in Romeo and Juliet is accurate.
• Explain the imagery used in Beowulf .

Narrative and Personal Essay Topics for High School

Think of a narrative essay like telling a story. Use some of the same techniques that you would for a descriptive essay, but be sure you have a beginning, middle, and end. A narrative essay doesn’t necessarily need to be personal, but they often are. Take inspiration from these narrative and personal essay topics.

• Describe a performance or sporting event you took part in.
• Explain the process of cooking and eating your favorite meal.
• Write about meeting your best friend for the first time and how your relationship developed.
• Tell about learning to ride a bike or drive a car.
• Describe a time in your life when you’ve been scared.

• Share the most embarrassing thing that ever happened to you.
• Tell about a time when you overcame a big challenge.
• Tell the story of how you learned an important life lesson.
• Describe a time when you or someone you know experienced prejudice or oppression.
• Explain a family tradition, how it developed, and its importance today.
• What is your favorite holiday? How does your family celebrate it?
• Retell a familiar story from the point of view of a different character.
• Describe a time when you had to make a difficult decision.
• Tell about your proudest moment.

Persuasive Essay Topics for High School

Persuasive essays are similar to argumentative , but they rely less on facts and more on emotion to sway the reader. It’s important to know your audience, so you can anticipate any counterarguments they might make and try to overcome them. Try these topics to persuade someone to come around to your point of view. ( Discover 60 more intriguing persuasive essay topics here. )

• Do you think homework should be required, optional, or not given at all?
• Everyone should be vegetarian or vegan.
• What animal makes the best pet?
• Visit an animal shelter, choose an animal that needs a home, and write an essay persuading someone to adopt that animal.
• Who is the world’s best athlete, present or past?
• Should little kids be allowed to play competitive sports?
• Are professional athletes/musicians/actors overpaid?
• The best music genre is …

• Is democracy the best form of government?
• Is capitalism the best form of economy?
• Students should/should not be able to use their phones during the school day.
• Should schools have dress codes?
• If I could change one school rule, it would be …
• Is year-round school a good idea?

A research essay is a classic high school assignment. These papers require deep research into primary source documents, with lots of supporting facts and evidence that’s properly cited. Research essays can be in any of the styles shown above. Here are some possible topics, across a variety of subjects.

• Which country’s style of government is best for the people who live there?
• Choose a country and analyze its development from founding to present day.
• Describe the causes and effects of a specific war.
• Formulate an ideal economic plan for our country.
• What scientific discovery has had the biggest impact on life today?

• Analyze the way mental health is viewed and treated in this country.
• Explore the ways systemic racism impacts people in all walks of life.
• Defend the importance of teaching music and the arts in public schools.
• Choose one animal from the endangered species list, and propose a realistic plan to protect it.

What are some of your favorite essay topics for high school? Come share your prompts on the WeAreTeachers HELPLINE group on Facebook .

Plus, check out the ultimate guide to student writing contests .

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Live Updates: U.S. Hiring Rises Strongly

The pace of hiring was unexpectedly robust in May, showing a gain of 272,000 jobs, but it wasn’t all good news: The unemployment rate ticked up, to 4 percent.

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Monthly change in jobs

+272,000 jobs in May

Lydia DePillis

What to know about the latest jobs report.

The American labor market delivered robust job growth in May, the Labor Department reported Friday, even as the unemployment rate ticked up.

The unexpectedly strong hiring shows that employers remain undaunted, despite pressure from high interest rates and slowing consumer spending . But there were some mixed signals in the report, with results from a survey of households painting a weaker picture than a survey of businesses.

Here are the details:

Services powered the gains : Overall, U.S. employers added 272,000 jobs last month, with health care again accounting for the most growth, adding 68,000 jobs. Government hiring rebounded from April, with 43,000 additional jobs, as did leisure and hospitality work, with 42,000.

Wages were strong: Average hourly earnings rose 0.4 percent, or 4.1 percent from a year earlier. That was also stronger than expected, since wage increases have been easing since early 2022 . Wage growth isn’t the primary reason that inflation has been high, but economists worry that it will be difficult to bring inflation fully under control if pay keeps rising at its recent pace.

But the unemployment rate rose: The jobless rate hit 4 percent for the first time since January 2022, ending one of the longest streaks of sub-4 percent unemployment on record.

A mixed message : The household survey, from which the unemployment rate is drawn, flashed warning signs, showing 408,000 fewer people working in May than in April. That data has been out of joint for some time with the survey of employers, from which the job growth figure is tallied, suggesting revisions down the line .

What it means for the Fed: The report was not what Federal Reserve officials have been hoping for : They would like to see slowing job and wage growth and continued low unemployment. Instead, the report showed accelerating job and wage growth and rising joblessness. In the end, the data is unlikely to affect the Fed’s decision next week on interest rates, when most economists expect policymakers to leave rates unchanged.

What it means for the White House: The headline jobs number is a source for celebration for President Biden: “On my watch, 15.6 million more Americans have the dignity and respect that comes with a job,” he said in a statement. But Mr. Biden is trailing in the polls, possibly indicating that Americans care more about high prices than they do about plentiful jobs.

How markets reacted: Stocks were flat and government bond yields rose sharply as the report raised concerns that inflation’s gradual decline could yet stall. That has led investors to slash bets on the Fed cutting interest rates in the near future, implying that historically high rates will continue to weigh on the economy for many months to come.

Ben Casselman

This jobs report sent unusually mixed signals. Here’s how.

Sometimes, the many numbers included in the government’s monthly jobs report come together to paint a clear, coherent picture of the strength or weakness of the U.S. labor market.

This is not one of those times.

Instead, the data released by the Labor Department on Friday was a mess of conflicting signals. It couldn’t even agree on the most basic of questions: whether the economy is adding or losing jobs.

The report showed that employers added 272,000 nonagricultural jobs in May, far more than forecasters were expecting. That figure is based on a survey of about 119,000 businesses, nonprofit organizations and government agencies.

But the report also contains data from another survey, of about 60,000 households. That data showed that the number of people who were employed last month actually fell by 408,000, while the unemployment rate rose to 4 percent for the first time in more than two years.

The two surveys measure slightly different things. The employer survey includes only employees, for example, while the household survey includes independent contractors and self-employed workers. But that doesn’t explain the discrepancy last month: Adjusting the household survey to align with the concepts used in the employer survey makes the job losses in May look larger, not smaller.

That means that the conflicting pictures come down to some combination of measurement error and random noise. That is frustrating but not unusual: Over the long term, the two surveys generally tell similar stories, but over shorter periods they frequently diverge.

Economists typically put more weight on the employer survey, which is much larger and is generally viewed as more reliable. But they aren’t sure which data to believe this time around. Some economists have argued that the household survey could be failing to capture fully the recent wave of immigration, leading it to undercount employment growth. But others have argued that the employer survey could be overstating hiring because it isn’t accounting properly for recent business failures, among other factors.

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Joe Rennison

Stocks have pared their earlier losses even as government bond yields remain elevated, with investors honing in on some of the inconsistencies in the data as they try to parse the significance for the Fed’s next decision on interest rates.

S&P 500

Jim Tankersley

President Biden celebrated the report: “On my watch, 15.6 million more Americans have the dignity and respect that comes with a job,” he said in a release.

But the president went on to stress his efforts to bring down prices, a nod to the high inflation that continues to weigh on voters.

It’s worth noting that wage growth was even stronger for production and nonsupervisory workers, at 0.5 percent. Lower-income workers had been seeing slower pay increases after the big surge of 2021 and 2022.

The drop in labor force participation came largely from those between the ages of 20 and 24, declining from 72.4 percent in April to 70.8 percent in May. As our colleague Peter Coy noted , workers with less experience are having the hardest time finding jobs as the class of 2024 hits the market.

Wage growth exceeds forecasts, potentially deterring Fed rate cuts.

Wage growth ticked up in may.

Year-over-year percentage change in earnings vs. inflation

+4.1% in May

+3.4% in April

Consumer Price Index

Avg. hourly earnings

As officials at the Federal Reserve weigh whether and when to cut interest rates this year, they have been hoping to see evidence that the labor market is gradually cooling but with unemployment remaining low.

The jobs report released Friday carried bad news on all fronts.

Hiring and wage growth both accelerated in May, according to the report. That could add to fears that the labor market remains too hot to bring inflation fully under control.

But unemployment rose slightly, hitting 4 percent for the first time in more than two years. That suggests high interest rates could be starting to take a toll in the form of increased job losses.

Policymakers will meet next week to weigh the economy’s conflicting signals. They are widely expected to leave interest rates unchanged at about 5.3 percent, their highest level in decades. The same is true for their next meeting, in July.

What happens after that is much less certain. Investors think there is about a 50 percent chance that the Fed will cut rates at its September meeting, but those odds have steadily worsened in recent months as inflation has proved more stubborn than policymakers had hoped.

Fed officials are paying particularly close attention to wage growth, which has fallen since the frenzied days of 2021, when businesses were trying to rapidly hire workers as the economy reopened from the pandemic. But pay is still rising significantly faster than before the pandemic, and while policymakers don’t believe that is a primary cause of recent price increases, they are concerned that it will be hard to bring inflation fully under control unless wage growth slows further.

“If you have wage increases running higher than productivity would warrant, then there will be inflationary pressure,” Jerome H. Powell, the Fed chair, said at a news conference after the central bank’s last meeting , in May. He said that policymakers had “seen progress” on wages but that “we have a ways to go on that.”

The data released on Friday showed that average hourly earnings, a measure of wage growth, rose 4.1 percent in May from a year earlier. The pace was faster than in April, and faster than forecast. That, combined with job growth that was also much stronger than expected, could make Fed officials more concerned about the job market remaining too hot — and therefore more reluctant to cut interest rates.

But the increase in unemployment could give some policymakers pause. So far, the Fed’s campaign of rate increases has brought remarkably little pain in the form of job losses, and the unemployment rate remains low even after the slight uptick in May. But historically, once the unemployment rate rises even modestly, it tends to keep rising.

Talmon Joseph Smith

The unemployment rate rising is causing some jitters for labor economists worried about a cooling labor market slipping into a downturn. Technically, the unemployment rate was 3.96 percent and therefore rounds up 4 percent. But, directionally, there may be more cause for concern for the jobs outlook than this time last year.

Sydney Ember

Nick Bunker of the Indeed Hiring Lab cautioned that the job market almost certainly couldn’t maintain such strong momentum for much longer. “While there is still a lot of strength in the labor market, its ability to continue to deliver robust gains at these levels will likely be challenged going forward as job openings continue to fall and the economy continues to cool,” he wrote in a note.

“One step forward, two steps back,” said Seema Shah, the chief global strategist at Principal Asset Management. “Today’s data undermines the message that other recent economic data have been giving of a cooling U.S. economy, and slams the door shut on a July rate cut.”

The leisure and hospitality sector added 42,000 jobs heading into the summer season , with particular strength in accommodation and food services.

The education and health sector gained the most jobs

Change in jobs in May 2024, by sector

Education and health

+86,000 jobs

Leisure and hospitality

Business services

Construction

Manufacturing

Investors have slashed bets on the Fed cutting interest rates in the near future. September now looks doubtful, but there is a lot of data between now and then that could change expectations again.

This report is, in some ways, the exact opposite of what Fed officials — and investors — have been hoping for. They would like to see slowing job and wage growth and continued low unemployment. Instead, today’s report shows accelerating job and wage growth and rising joblessness.

Most of the immediate reactions from analysts in my inbox welcomed the strength of the labor market but worried about strong wage growth. Together, they are likely to keep the Fed from cutting rates in the immediate future.

Hiring was generally strong across the board, though some sectors were weaker than others. Hiring was flat, for instance, in the information sector, which includes publishing companies and other content providers.

Average hourly earnings, a measure of wage growth, rose 0.4 percent in May from April, and were up 4.1 percent from a year earlier. That was faster than forecasters had been expecting, and could fuel fears among policymakers at the Fed that the strong labor market could be fueling inflation.

Most economists don’t think that wage growth was a primary cause of the inflation of the past few years. But they do worry that it will be difficult to bring inflation fully under control if pay keeps rising at its recent pace.

The jobs report is based on two separate surveys, one of households and one of businesses. The two told very different stories this month: The business survey showed very strong job growth, while the survey of households showed falling employment and rising joblessness.

Over time, the two surveys tend to tell consistent stories. But in any one month, they can diverge and it can be hard for economists to know which signal to believe.

While the household survey was weaker, the prime age labor force participation rate — that is, people between the ages of 25 and 54 who are working or looking for work — edged up to 83.6 percent, which is the highest it’s been since early 2002.

Investors don’t love these numbers. In particular, the nudge higher in wage growth, alongside the robust hiring figures, will raise concerns again that inflation’s gradual decline could yet stall. Stocks are dropping and the two-year Treasury yield, which is sensitive to interest-rate expectations, is markedly higher.

It’s quite remarkable, actually, the number of times that economists have forecasted a sharper downturn only to be proven wrong by a blockbuster number — though the very high ones have often been shaved down by revisions.

The headline number is a source for celebration for President Biden, who frequently points to the strong job market when making the case to voters that he has handled the economy well .

The president will be less happy with the slight uptick in unemployment. But the real question for his economic team is, what does this report mean for the Fed — and is it likely to help delay interest rate cuts until after the presidential election in November, at earliest?

There were very modest downward revisions to the job gains for March and April. There were 15,000 fewer jobs added in the two months combined.

Employers added an unexpectedly strong 272,000 jobs in May, but the unemployment rate hit 4 percent for the first time since January 2022.

Markets are muted ahead of the jobs report, with both stocks and government bonds barely changed this morning. The muted moves come after a positive week so far, with the S&P 500 up around 1.4 percent since Monday.

Demand for summer help appears to be strong.

If summer employment looks anything like the forecasts for summer travel, a lot of workers are going to be needed to staff parks, pools, camps, airports and beach umbrella rental stations.

Demand for camp slots has been very strong, said Tom Rosenberg, chief executive of the American Camp Association, which represents 10,000 sleep-away and day camps across the country. And camps need more workers, he said, including those with mental health expertise, since campers have had more social and emotional issues coming out of pandemic isolation.

“You need more staff to serve the ever-expanding needs of the children, and you need more backup staff to provide a really solid, safe, high-quality experience,” Mr. Rosenberg said.

To recruit quality candidates, camp directors are pitching the job-training aspect of being a counselor, which can help with an entry-level position after graduation. And it may be working: More job-seekers are coming to the organization’s portal for job listings.

Teenage Employment Has Been Flattening Out

The share of people between the ages of 16 and 19 who are working rose during the pandemic but is still below historical averages.

Many of those jobs are typically taken by students while they’re off from school — and in the tight labor market of the last few years, more teenagers have landed positions.

The share of 16- to 19-year-olds who are working fell in the early 2000s, and again later in the decade, as summer priorities like sports and extracurricular academic programs became more popular. But the percentage rebounded after the recession of 2009, along with most other age groups.

Markets are poised to take a jobs slowdown in stride.

Stock markets offered a preview of how investors might react to a potential drop in the number of new jobs added in May when they rallied this week after other signs that the labor market continues to cool.

The S&P 500 has risen 1.4 percent this week, and the 10-year government bond yield, which underpins borrowing costs across consumer and corporate debt, has fallen 0.2 percentage points — roughly the same as a typical cut to interest rates by the Federal Reserve.

Investors added to bets on how soon the Fed could lower interest rates after data on Tuesday showed job openings fell to their lowest level since in more than three years.

Investors still expect the Fed to begin cutting interest rates in September but have increased bets that it will opt to start sooner, in July. Other central banks around the world have already begun to lower rates, including the Bank of Canada on Wednesday and the European Central Bank on Thursday. Analysts at Citigroup and JPMorgan Chase are among those predicting a July move by the Fed. (Fed policymakers meet next week to set rates, but most analysts believe they will leave rates unchanged.)

Some investors have noted that other data on the U.S. labor market, such as the employment component of recent manufacturing surveys and the number of people voluntarily leaving jobs, have signaled that the economy might be starting to buckle.

That’s part of the reason that the government’s monthly release of jobs data has become one of the most closely watched releases on investors’ radar, deemed vital for assessing the path of inflation and interest rates.

With investors and economists already expecting a further slowdown in the number of new jobs added in May, and more data to come before the Fed meets in July, some analysts said it would take a big surprise to get a strong market reaction.

Already this week, Nvidia and Microsoft, both beneficiaries of the boom in artificial intelligence whose growth is aided by lower interest rates, led the S&P 500 to a new high.

Nvidia on Wednesday became the third company, after Apple and Microsoft, to have a market value above $3 trillion, and briefly became worth more than Apple before inching lower on Thursday. Microsoft remains the mostly highly valued company in the United States, at $3.2 trillion.