WHY IS UNEMPLOYMENT A SERIOUS PROBLEM?
Unemployment is a serious
problem. It includes being homeless, jobless, being in debt, aroused family
tensions, high stress level within oneself which may even cause low self –
esteem. Among things that cause unemployment is having a poor educational
background. This consequently leads to a poor economy within a country due to
the high unemployment rate.
Aspects like recession and
unfavorable government regulations within a country also causes unemployment.
This is because there might be
policies that negatively affect and limit the possibility of new job creations
by various organizations. Such policies may include the sanctioning and
approval of privatization of organizations by the government through capitalism
where the poor are heavily exploited either through cheap labour or even unfair
dismissals and retrenchments.
These are further compounded
by a rapid increase of globalization levels, as technology has replaced human
resources, which also acts as a catalyst to unemployment within a country.
Regarding recession. The
increase in product prices within a country heavily strains businesses and
companies. High prices severely decrease the customer levels (the demand),
which subsequently leads to retrenchments as there is no money to accommodate
the high number of workers within the business due to low revenue generation.
High unemployment levels
within a country also places a huge level of responsibility on the government
itself.
This is because the government
must ensure people’s needs are met, irrespective of their demographics.
Citizens within a country are protected by their constitution and Bill of
Rights, which mostly promises its citizens a fair quality of life through the allocation
of basic needs by the government, but this differs country to country.
Most governments have then
taken the initiative to increase tax rates within their respective countries to
raise funds to accommodate the poor and the unemployed portion of their
population into their budget, where relevant. The South African government
being a typical example.
This contrast between fair
(like the South African government) and unfair governments (like the paragraph
before) indicates the high level of power the governments have regarding
unemployment in a country.
It is important for both
sectors (Private and Public sectors) to address the problem of unemployment and
work together in fighting it as it does not only affect people who are unemployed
but the government too as it will find itself on having a huge liability and a
responsibility regarding helping its citizens to meet their needs. The private
sector will then have it hard as high percentage of tax rate will be deducted
from them for the government to help its citizens.
