Read this article to learn about bad effects of unemployment on Economic Growth!
Unemployment is a big problem which effects the economic growth of the country. It has following bad effects:
(i)Exploitation of labour:
Due to unemployment labourers are exploited. They have to accept low wages and work under un-favourable conditions.
Industrial disputes arise because of unemployment. It has adverse effects on employer-employee relations. Due to industrial disputes, the unemployment rises.
There is political instability in the country due to unemployment. Unemployed persons engage themselves in destructive activities. They consider Govts, worthless. Economic development becomes difficult under conditions of political instability.
Many social evils like dishonesty, gambling and immorality etc. arise due to unemployment. It endangers law and order situation of the country. It causes social disruption in the society.
(v)Increase in poverty:
Under the situation of unemployment a man has no source of income. Unemployment causes poverty. Burden of debt increases. Economic problems increase.
(vi)Loss of human resources:
Due to unemployment, human resources go waste. No constructive use of labour force is made. If human resources are properly used, economic growth of the country will increase.
Effects of Unemployment to the Philippine Economyu
2779 WordsMar 4th, 201312 Pages
Why is Unemployment high in the Philippines?
As a result of the global economic crisis, which drastically cut our exports and slowed down our OFW (overseas Filipino workers) remittances, Philippine economic growth in GDP (gross domestic product) terms which was registered at 7.1 percent in 2007 was brought lower to 3.8 percent last year and to just about 1 percent in the first half of the year.
Despite the slowing down of the domestic economy, however, Philippine unemployment rate remained at almost the same level as it was before the current crisis. In the January, April and July Labor Force Survey this year, the country?s unemployment rate was placed at 7.7 percent, 7.5 percent, and 7.6 percent, respectively. These do not differ very…show more content…
Even with the recession, and contrary to the expectation of many observers of the economy, both local and international, the number of reported jobless Filipinos going out is still increasing although not at the same rate as before. Why? My explanation is that firms in the receiving country favor our OFWs because of their willingness to do any kind of work even for the smallest pay. Why do we do that? Because the alternative is to do nothing and receive nothing here.
But are there really no jobs available in the country? Of course, there are, and the demand for workers here also grows every year as long as our economic growth remains positive. The only trouble is that the number of our new entrants to the labor is quite large also every year because of our rapid population growth. When the number of new entrants to our labor force is bigger than the number of new jobs created, the result is the increase in the number of our unemployed or higherunemployment rate.
How Does unemployment affect our economy?
Unemployment effects the economy in ways that most people do not visually see. If more people are unemployed, less people pay taxes or have money for spending. Spending money boosts the economy through taxes which is why everything is taxed. The taxed money adds up when everyone shops. If one is unemployed, they live on what is saved or what unemployment departments give them. Therefore, they do not have money