Supervision by: Dr.Mohammed Saleh
What is meant by unemployment?
The concept of Unemployment refers to the situation in which
individuals who are looking for work to employ their skills and
experience are unable to find those opportunities. In creating
job opportunities for individuals, it also refers to the ability of
these individuals to easily obtain work from which they can
earn money to contribute to the gross domestic product of the
economy, and the unemployment rate represents the number
of individuals or unemployed persons divided by the number of
the workforce in the country multiplied by one hundred Some
governments also provide compensation or insurance against
unemployment for unemployed individuals who meet the
necessary qualifications for that, and it is possible that high
unemployment rates and rates indicate serious financial
hardship on the state’s economy, and it may greatly affect the
social and political environment, and sometimes lead to This
leads to disturbances that would destabilize the internal peace
of the state.
What are the types of unemployment?
Unemployment is a global problem suffered by various
countries and generally affects all economic activities
significantly, which prompted many analysts and economists to
study and understand it in a deeper way, and accordingly the
responsible authorities have divided unemployment into four
types that will be clarified through the following:
The friction unemployment
occurs when individuals change their voluntary jobs within the
state. After the person left his function is very natural to take
time to find a new job, and examples of frequency
unemployment enters the workforce modern graduation to the
labor market To classify them within the unemployment
section until the appropriate job was found within their studies.
This type of short-term unemployment, which is less affected
by the health and overview, is a natural result that processes
within the market take time.
The rotating unemployment
occurs in periods of recovery and economic contraction in the
form of contrast in the unemployed number. For example,
when oil prices differ from the world, so that the
unemployment rate is rising during the recession and decreases
during periods Economic growth, Governments use several
different methods to treat this type of unemployment due to
the great negative impact that this type is to be formed on
economic and social lateral.
Structural unemployment
structural unemployment from technological changes in the
structure of the labor market, when technological
developments are conducted in the work environment as the
replacement or automation of manufacturing and packaging
processes, it will affect the amount of employment required
within Factories or producers, replacement of the employee in
the machine or technology will contribute to the rate of
unemployment significantly, and the process of rating these
staff and training them to deal with technology is expensive
and time.
Institutional unemployment
through long-term or permanent institutional factors and
institutions permanently in the economy, governments impose
new minimum wage policies, social advantages, social security,
or high trade unions Labor market institutions, as well as large-
handed vocational licensing laws, and other other factors
playing institutions.
What are the causes of unemployment?
There must be reasons that led to the occurrence of the
problem of unemployment of all kinds, and these reasons can
be summarized through the following:
• The difference between recession or stagnation and
economic prosperity, where unemployment rates rise when an
economic recession occurs in the country and decrease when
the opposite occurs.
• The natural rate of unemployment, which is generated by
employees leaving their jobs in search of other jobs, as it
symbolizes the period of time during which the employee
remains without work in search of another job.
• The mismatch between the jobs offered and the
qualifications or skills possessed by the individuals, which may
be attributed in one way or another to the educational
background of the individuals.
• The great technical development witnessed by companies
and industries in general.
Changes in social attitudes toward certain jobs as
inappropriate for the individual and assessing them on
incorrect grounds.
• Political changes to which employees are exposed, such as
changing the minimum wage for employees and the number of
employees that companies can afford.
• The preference of capitalist persons or business owners in the
economy to increase unemployment rates. This has been
proven by studies related to systematic unemployment and
confirmed that it is possible, with large numbers of
unemployed people, to employ individuals at a lower wage and
accept the conditions that can be placed on them.
• Keeping the wages of some employees relatively high for
various reasons, including the positions occupied by these
employees, and the nature of the companies or institutions
they work for.
Causes of unemployment in Iraq:
The difficult conditions that Iraq experienced during the past
years led to an increase in the unemployment rate in a country
rich in oil and its natural resources. And security, political and
economic instability in Mesopotamia .
Effects of unemployment
Unemployment affects society and individuals in a clear and
observable way. These effects can be identified in the
following:
The effects of unemployment on individuals
Low income
Unemployed individuals suffer from a decrease in their total
income as a direct result of the lack of a stable job that secures
them an income adequate to their needs. Unemployed
individuals often depend on the wages they receive and have
no other source of income to finance their basic expenses.
Health problems
Unemployment can affect the physical health of people, so
that unemployment can be considered very stressful without
achieving achievement, and this affects the individual’s psyche,
and the effects may be psychological tension, headaches, high
blood pressure, diabetes, heart disease and many others.
Negative family effects
The unemployed person's family is exposed to great
psychological pressure resulting from the accumulation of
expenses and debts, and unemployed people face greater
family challenges.
Mental health challenges
Studies have shown that unemployment increases a person's
chance of developing symptoms of depression, due to reduced
subjective well-being and low self-esteem.
The effects of unemployment on society
Unemployment affects the local community or the society in
which the unemployed is present, but on the other hand, the
unemployed does not affect the community, unless there are
large numbers of unemployed people, which will contribute to
a rise in rates in certain areas and thus an increase in poverty
and slums Which plays a role in affecting society and the
standard of living of the individuals who live in it, so that
recreational activities, housing quality, and limited access to
means of communication, the Internet, or even transportation
will be reduced.
Effects of unemployment on the economy
Unemployment affects the economy as a whole. When people
are unemployed, they spend less money, which ultimately
contributes to reducing the overall contribution to the
economy in terms of goods, services, and products.
Unemployment affects purchasing power, which can also lead
to an increase in the unemployment rate. Which makes it a
closed loop.
Suggestions to solve the problem of unemployment
• Due to the great impact that unemployment leaves on
individuals and societies, it was necessary to work on analysis
and investigation to find appropriate solutions to treat the
problem and prevent the occurrence of negative effects in
general. Through the following, the most prominent proposals
that were put forward can be summarized:
• The change in industrial technologies, where the industrial
technologies used in production must be commensurate with
the needs of the state and its citizens.
• Attempting to abolish the seasonal unemployment policy, as
this type of unemployment exists in industries related to
agriculture and must be reduced through the cultivation of
multiple crops, encouraging farmers to carry out gardening,
animal husbandry and obtaining dairy, in addition to
encouraging domestic industries.
• Changing the education system, the educational pattern must
be completely changed, as it must focus on vocational
education, performance development and qualifications, in
addition to supporting people who love learning in completing
postgraduate studies, in order to produce a generation capable
of starting their own business upon completion of university
studies.
• Expanding opportunities for rotation at work, so that
individuals can learn from the work and tasks of others in short
periods that do not affect the performance of tasks related to
their primary job.
• Providing assistance to people working on their own account,
so that people who run their own business are financially
supported and raw materials and technical training are
provided to carry out the work to the fullest, which may
contribute to opening new job opportunities to serve the
community.
• Encouraging full and more productive employment, as
companies must make their primary goal the creation of the
largest possible number of job opportunities and labor
productivity at the same time, so that they adopt the provision
of job opportunities for the largest number that they can
absorb.
• Increasing the productivity of domestic industries, as it is
necessary to increase employment, increase the volume of
production, and encourage development in this field.
• Increasing the rate of capital formation, in the event that
individuals obtain the necessary support to form their own
capital; It means providing an opportunity to build a new
project and thus increase job opportunities in the communities.
• Giving greater importance to employment programs;
Programs such as irrigation and roads can provide various
employment opportunities for people.
Sources
↑ " Unemployment", corporate finance institute, Retrieved
13/10/2021. Edited.
↑ "Unemployment", history of social security, 1/6/2021,
Retrieved 13/10/2021. Edited.
↑ ADAM HAYES (10/9/2021), "Unemployment", investopedia,
Retrieved 13/10/2021. Edited.
↑ "What causes unemployment", ecnmy, Retrieved
13/10/2021. Edited.
↑ Indeed Editorial Team (31/3/2021), "Effects of
Unemployment on Individuals, Society and the Economy",
indeed, Retrieved 13/10/2021. Edited.
↑ Pooja Mehta, "Suggestions to Solve Unemployment
Problem", economics discussion, Retrieved 13/10/2021. Edited.