Problem Solution Essay: Unemployment
The facet of unemployment refers to the characteristic phenomenon that essentially occurs when an individual is consistently searching for proper employment but fails to find one. It is also often used to measure the current economic scenario of a definite country. Thus, the primary concern of this study is to locate the key facets and propositions that are associated with unemployment and will locate the predominant reasons behind the presence of unemployment in society and how it affects the economic condition of a definite economic scenario.
It is to be noted that, there are varied reasons behind the presence of unemployment, which can be categorised as the following:
- Frictional unemployment, which tends to come from temporary and definite transitions that individuals make from shuffling one job to the other for better payment of monthly salary, or which manages to be compatible with their skills
- Structural unemployment occurs when there is a serious mismatch in the industrial or demographic situation of economy (Baumgartner, 2016).
- Cyclical unemployment occurs when there is less demand for service and goods in the economy of a country and fails to provide job to the citizens.
In spite of unemployment being one of the serious issues in an economic scenario, it is important to note that, there are certain factors, which acts as a mitigating factor for unemployment (Dickens, 2017). They are as follows:
- Expansive monetary policy, which has the feature of a low interest rate and makes it easier for definite individuals to attain a borrowing policy
- Fiscal policy is one of the most effective solutions to unemployment and recession. The government needs to reduce the amount of taxes in order to stimulate the economy.
- Funding education, which provides employment opportunities to teachers and unemployment can be mitigated through this (Capaldo, 2016).
Therefore, it can be concluded by stating the fact that, unemployment is one of the major concerns that are associative of the economic scenario of a definite locality. After this assessment, it can be said that, one of the best ways to mitigate the problem of unemployment is to make more avenues of employment through the creation of vacancy for attaining the compatible employees. Because of this, the integration of the economic drawbacks will attain an effective stimulation.