Effects of Unemployment
The following are the impacts or effects of unemployment:
- Poverty is a problem that is a result of unemployment.
- Due to lower output and lower consumer demand for products and services brought on by unemployment, the government is forced to take on more debt.
- Antisocial elements can quickly attract unemployed individuals. They start to doubt the country’s democratic principles as a result of this.
- Long-term jobless individuals may engage in unlawful and unethical acts to make money, which raises the crime rate in the entire country.
- The nation’s economy is impacted by unemployment because the labor force that could have been productively engaged to produce resources instead becomes reliant on the working population, increasing the state’s socioeconomic expenses. For example, a 1% rise in unemployment results in a 2% reduction in GDP.
- It is common to see jobless individuals develop drug and alcohol addictions or attempt suicide, which depletes the nation’s human capital.
What is Unemployment Rates? List of Highest Unemployment Rate Countries
The unemployment rate is defined as the percentage of people in the workforce who are unemployed. The formula for calculating the unemployment rate is to multiply the total labor force by 100 and divide the number of jobless people by that amount. The national unemployment rates of a large number of countries throughout the world are continuously calculated and recorded by organizations like the World Bank, the International Monetary Fund (IMF), and the Organisation for Economic Co-operation and Development (OECD). The unemployment rate is likely to increase when the economy is struggling and there are few jobs available.
In this article, we will look into the various aspects of unemployment, and the unemployment rate, covering its types, causes, and effects. We will also look into the unemployment rate in India and the list of countries with the highest unemployment rates and discuss some strategies for resolving unemployment issues.
Table of Content
- What is the Unemployment Rate? Formula of Unemployment Rate
- List of Countries with the Highest Unemployment Rate in 2023
- Unemployment Rate in India
- What is Unemployment?
- Types of Unemployment
- Causes of Unemployment
- Effects of Unemployment
- Strategies for Resolving Unemployment Issues
- Conclusion – Unemployment Rates
- UPSC Prelims Previous Year’s Questions on Unemployment Rates
- FAQs on Types, Causes and Effects Unemployment Rates