Economic and social consequences of unemployment

 Economic and social consequences of unemployment 

Introduction 

Unemployment means a situation in which youth who are employable want to work but they do not g.et work.

According to the data released by the Ministry of Labor, about 7.8% of the youth in the urban area are unemployed whereas in a rural area about 5.3% of youth are unemployed.

According to the National Sample Survey, the total number of workers in the Indian economy in 2011-12 was 472.5 million, while in 2017-18, the number of workers has reduced to 457 million.

One of the studies says, the Unemployment Rate in India has reached an all-time high of 23.50 % in April of 2020.

• Economic Consequences Of Unemployment In India

• Non-utilisation of Manpower

1. Unemployment leads to underutilisation of available manpower.
2. As we are not able to use the resources to the full capacity.

• Loss of Output

1. There is a loss of generating more output by using the available resources
2. Hence unemployed people are not able to contribute.

• Low Capital Formation

1. Unemployment only increases the burden of government.
2. By increasing the social consumption expenditures.
3. These expenses do not contribute to capital formation.

• Low Productivity

1. The productivity of the agriculture sector is exceptionally low as compared to other countries.
2. Low productivity leads to a low growth rate

• Social Consequences Of Unemployment In India

• Low Quality of Life
• Unemployment decreases quality of life.
  As people are not having enough resources to fulfil their basic needs.

• Greater Inequality
• Unemployment leads to an increase in the gap between rich and poor.
  It will lead to unequal distribution of income and wealth.

• Social Unrest
• Unemployment and other factors may lead to terrorism.
  Involvement in Anti-National activities.

• Class Struggle
• Class struggle means a struggle for those who are not having enough resources.
  Unemployment divides the economy into having and have not.

• Consequences Caused by Unemployment in India

Unemployment affects an individual, family, as well as society, or it may be said that unemployment causes personal disorganization, family disorganization, and social disorganization.

1. Personal Disorganization:

From the point of view of personal disorganization, the unem­ployed person faces disillusionment and falls, easy prey to cynicism. Having no outlet to release their depression, young persons, tune their creative energies into wrong channels which explain the rise of the number of youthful bandits, highway robberies and bank hold-ups.

These anti-social activities offer a chance to the undisciplined and recal­citrant youth to extract a living. Most of the criminals are undoubtedly recruited from boys with a history of earlier delinquencies but there has been an increase in the number of daring criminals with the decrease in work opportunities. On the other hand, the plight of an earning person who loses his job is equally sad.

2. Family Disorganization:

Family disorganization because of unemployment is easy to meas­ure. Unemployment affects the unity of interests of family members, the unity of objectives, as well as the unity of personal ambitions. The dis­harmonious functioning of the members creates discord within family, which means that not only do the tensions between the unemployed hus­band and wife increase but conflicts between parents and children also arise.

Sometimes the wife of an unemployed person wants to take up a job but the idea of a wife taking up a job irritates the husband with tradi­tional and conservative values so much so that there is tremendous conflict within the home. Many husbands object to any substantial as­sumption of authority by their wives in the fields which they (the husbands) consider traditionally their own. On the other hand, the con­flict between husband and wife may arise when the unemployed husband wants his wife to take up a job and the wife is reluctant to do so because of the presence of small children at home.

3. Social Disorganization:

Social disorganization caused by unemployment is hard to measure. Social disorganization is a breakdown of the social structure, or change because of which old forms of social control no longer function effec­tively, or a process by which social relationships between members of a group are broken or dissolved.

The activities of the unemployed are so restricted and their attitudes so bitter that in this phase of disillusion­ment and discouragement, they lose their desire to work and their skills may deteriorate with a resultant loss to the whole community (Colcord, 1941). In a brave effort to manage the family with a little saving and/or borrowing in cash or kind, many families suffer slow starvation by resorting to unbelievable economy in food and other ne­cessities of life.

Conclusion

The government should create a job-generating system and the youth seeking employment should insist on using it 100%.

Fixed wages and lack of employment are not only indicators of a weak economy but also point towards political instability and crisis in the country.

Ultimately, the need is that all the youth of the country should get work according to their ability and need, then only then a Healthy, Happy and Developed country can be imagined.