Unemployment is a burning problem that is not limited to a city or country but impacts the entire world. Today, our world has become a place where we can see a collective sensation of uncertainty and money deprivation. In this condition, unemployment plays a major role and affects communities in a way that they need years to heal from the injuries of such problems. Come with me to see the details of unemployment consequences on the community.
If structural unemployment is increasing in the country, the government needs to root out the useless disciplines and introduce new fields and training programs to the community so they can learn something new following the demands of industries. Unemployment can affect a community badly and create an apocalypse before doomsday.
1. Economic Consequences Of Unemployment
If unemployment is surging in a country, its economy is about to suffer from an extreme loss of productivity. First, the foreign investment will decrease, and then the regional companies or industries will start leaving the country which directly damages the economy of the country. The government provides free health, education, transportation, and other facilities by generating revenue from taxes on the industries and companies but when there is no or very limited number of industries, the government will impose taxes on people.
Because the industries and companies have left the country or stopped working due to the high taxes, unemployment will surge higher and higher. It is happening in South Africa where more than a quarter of the population is unemployed and managing their household expenses taking social security benefits. Unemployment can ruin a fast-paced and undefeatable economy, for example, the 1980s to 1998 conditions of the UK economy.
2. Social Consequences Of Unemployment
Increased Crime Rates
Literature is full of studies predicting that unemployment can increase the crime rates in the region. It is very simple to understand the crime and unemployment rates positive relation.
When the members of a community are unable to find a source of income and the economy is trembling, inflation increases. The rising inflation ignates crime rates in the region.
Basically, inflation widens the gap between people and their daily use of commodities. When they are unable to afford their daily use commodities, such as electricity, food, and housing, they are more prone to commit crimes, become involved in fraud, and murder people for their own benefit.
Rising Racism & Sexism
Unemployment can exacerbate racism and sexism indirectly. Studies have shown the data of the countries and regions where multiple ethnicities live together and unemployment is also high, their racism and sexism rates have increased with the surging ratio of unemployment.
Racism
- Because there are fewer job opportunities, people in higher positions in the departments are more prone to benefit their ethnic group members rather than other ones.
- The competition in the region increases and companies or industries are more prone to be monopolists.
Sexism
- Companies or industries are more prone to benefit one gender over another, for example, females will get less salary compared to their male counterparts.
- The women in the field can be considered as a threat to men which maximizes differences between men and women in society.
3. Political Consequences Of Unemployment
Political Polarization
For years, political polarization and identity politics have been the best ways to manipulate people and become a subject of their favor during a crisis. If you carefully view the situation of a society where unemployment is surging, let’s say, in South Africa, people are stressed regarding their employment issues, the heavy taxes, and low rates of opportunities.
Politicians take advantage of this situation and sell their point of view to the public that they are the sole personalities feeling the pains of people and if they get power, they can root out unemployment within a few weeks. It helps leaders portray themselves as heroes and raises their popularity.
When a group of people considers a leader the sole solution to the crises, the other group hates that leader equally which creates political polarization in the country. In the end, politicians gain benefits with the help of political polarization and the unemployment crisis.
Limited Policy Implications
Unemployment is a monster-like problem that needs long and robust policy implications. However, the government’s tenure ends after 4 to 5 years, and the next government cabinet comes with different ideologies and multifaceted solutions. It prolongs the unemployment duration as different people imply various limited horizon policies.
Unemployment is a burning issue all around the world because robots and AI are taking the place of human strength. However, it does not mean that jobs are about to end, but it is a signal that new jobs, and industries will come up in the market such as self-driving car industries, electric vehicle industries, robots market, and the AI professionals market so we need to focus on future trends to end unemployment.
Unemployment is a problem and it has solutions, we should force our government to take proper steps against surging rates of unemployment.