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Unemployment is a situation whereby there are people in the society with the desire to work, but without enough jobs for everyone. Presently, unemployment is amongst the biggest problems that affects many countries globally. Unemployment is caused by numerous challenges. One of the reasons that lead to unemployment is that numerous people are dissatisfied with their salaries. This is a feeling that many people undergo because they feel they are not earning enough money for their work. In turn, they prefer taking unemployment benefits instead of taking up any job. Another reason is because presently there are few companies in most of the countries. In every society there must be people who are unemployed. There are various different types of unemployment, which include hard-core, structural, seasonal, frictional and cyclical.
Statistics on Unemployment
Statistics about unemployment around the globe are numerous. Several researchers gained interest of understanding the challenges behind unemployment. For instance in the United States, there is financial crisis and ensuing deep recession most likely contributed to the sharp increase of unemployment. The U.S. unemployment rate peaked at 10.1% in October 2009. By looking at the adjustment of changes in demographic composition of the labor force, it is evident that this is the highest rate of unemployment ever witnessed since the Great Depression. Unemployment edges down slowly around the globe, nonetheless, in most developing countries there is still sluggish improvement. The U.S. unemployment rate stands at 9% more than two years in the recovery. Persistently, the world unemployment rate grows at an alarming rate because of numerous factors. For instance in Africa, the rate of unemployment is extremely high and they are struggling to deal with the high rate of unemployment. Long-term unemployment that subjects most people to suffer for more than twelve months is really devastating. This is the most serious form of unemployment because when one is unemployed for more than two months is likely to cause poverty. In addition, long term unemployment places so much strain on the government because the government supports them without getting much tax revenue (Hirvonen, 2005).
Unemployment is a major problem all over the world. Many people especially youth are lacking job and this fact has led them to be involved in many illegal activities. Unemployment has been associated to with high cases of insecurity, and drug abuse and smuggling that are being witnessed all over the world (World Economic Forum, 2012). Since unemployment is an international problem and it is dragging behind economic development of all nations, world leaders have come together to help find a solution for this problem. In order to address this problem, world leaders have come up with many solutions including:
Fostering youth entrepreneurship and access to finance: Entrepreneurship is viewed broadly as a key to addressing the employment challenge in the context of general frustration with ineffectiveness of ancient approaches t job creation. There is substantial merit to the argument that promotion of youth entrepreneurship will facilitate self-employment, and there is an outstanding interest in entrepreneurship by the youth (World Economic Forum, 2012). Youth are more likely to indicate an interest in starting their business in the curse of the next three years.
Enabling small and medium enterprises: A significant source of entrepreneurial activity and job creation is provided by small and medium sized enterprises according to consistence illustration by international evidence. This intervention can introduce flexibility in the regulation of start-ups, enhance access to finance, improve the business skills of entrepreneurs, offer strategic guidance to companies and support the introduction of innovative business models despite the fact that this intervention may not create legal atmosphere friendly for SMEs (World Economic Forum, 2012).
Core principles of social innovation for youth: Even though social innovation may not be a substitute for economic reforms in address the problem of unemployment, they can serve as models to the larger policy and business community and, via replication and up-scaling, it can bring about real change in the lives of the youths (Daly, 2011). The above steps taken by world leaders in order to address the problem of unemployment are right and of great significance. This is because governments cannot create jobs on its own or employ all youths in ministries. Hence, it is of great importance that youths themselves should be source of employment by being innovative than supported by government. Thus, by supporting innovation and entrepreneurship, word leaders took the right step which should be supported all over the world. World leaders are heading towards right direction since they do not create employment for the youth, but they are helping youths to create their jobs. Hence, youths will be a major source of employment in few years to come and help reduce crimes and drug abuse that are associated with unemployment.
Approaches Recommend in addressing Unemployment
The growing unemployment rate and other summative indicators clearly indicate that there is need to look for ways of addressing the challenge of unemployment. In fact, fiscal stabilization policies and short-run monetary are aiming at addressing cyclical unemployment. One way of solving the issue of unemployment is to increase the salaries (Mathew, 2012). Government needs to look for extra cash to improve people’s standards of living. Rise in salaries is likely to encourage workers to work harder to ensure that they improve the company’s profitability. Creation of more jobs and working places is another option essential in reducing the escalating rate of unemployment. As much as it is the better way, it remains the most challenging since it is difficult to establish a company. Creation of workplaces is likely to give the unemployed the opportunity to gain chances at the working places. This is most likely to lower the rates of unemployment. Nevertheless, there are high chances that companies are likely to lose their ground. The parties are also likely to create financial consequences and making company to lose its reputation (Shah, 2010).
Another case is the affirmative action that is likely to reduce cases of unfairness in the workplace. According to the founders of US’s foreign aid, foreign aid- the international transfer of capital, services, or properties from international organizations. At the local level, there are numerous ways of dealing with the problem of unemployment. First, it is important to cut down state expenditure, create incentives, and create jobs through and reduce the costs associated welfare. Another way of reducing unemployment is to educate youths to begin their small businesses to tackle youth unemployment.
Presently, unemployment is amongst the biggest problems that affects many countries globally. Joblessness is caused by numerous challenges. The growing joblessness rate and other summative indicators clearly indicate that there is need to look for ways of addressing the challenge of unemployment. In fact, fiscal stabilization policies and short-run monetary are aiming at addressing cyclical unemployment. One way of solving the issue of unemployment is to increase the salaries. Government needs to look for extra cash to improve people’s standards of living.