Top Solutions to the Problems of Unemployment

 



Top Solutions to the Problems of Unemployment


Unemployment has become a major problem bedeviling the lives of Nigerian youth and other underdeveloped countries, causing increased militancy, violent crimes, kidnappings, restiveness and socially delinquent behavior. Youth unemployment is devastating to both the individual and the society as a whole both psychologically and economically.

The article examines the issue of unemployment and looks at potential interventions such as effective career guidance, technical and vocational education as well entrepreneurship education, new discovery on how to solve unemployment problem and top solutions to the problems of unemployment are made.

 

What is Unemployment?

Unemployment is a term referring to individuals who are employable and actively seeking a job but is unable to find a job. Included in this group are those people in the workforce who are working but do not have an appropriate job. Usually measured by the unemployment rate, which is dividing the number of unemployed people by the total number of people in the workforce, unemployment serves as one of the indicators of a country’s economic status.

 


Understanding Unemployment

The term “unemployment” is often misunderstood, it as it includes people who are waiting to return to a job after being discharged, yet it does not include individuals who have stopped looking for work in the past four weeks due to various reasons such as leaving work to pursue higher education, retirement, disability, and personal issues. 

Also people who are not actively seeking a job but do want to work are not classified as unemployed. Interestingly, people who have not looked for a job in the past four weeks but have been actively seeking one in the last 12 months are put into a category called the “marginally attached to the labor force.” Within this category is another category called “discouraged workers,” which refers to people who have given up looking for a job. 

The categories mentioned above sometimes causes confusion and debate as to whether the unemployment rate fully represents the actual number of people who are unemployed. For a full understanding, one should juxtapose “unemployment” with the term “employment,” which the Bureau of Labor Statistics (BLS) describes as individuals aged 16 and above who have recently put hours into work in the past week, paid or otherwise, because of self-employment.

 


New Discovery on How to Solve Unemployment Problem

Many of the conversation on finding solutions to the unemployment problem has centered on the pivotal role of faster economic growth and cuts in real wages. Faster economic growth is viewed as a means of generating more jobs. Cuts in real wages are a reaction to the view that through their demands for higher wages, some groups of workers have priced themselves out of a job.

How much growth and how large a fall in real wages would be required to reduce the size of the unemployment problem both remain matters for debate.

Research findings show that an overhaul of the National Labor Relations Act in the United States as a way of preventing unions from delivering the monopolistic wages and fringe benefit premiums that raises business costs and lead to unemployment. Such proposals are often very difficult to implement.

Simulations for the Australian labor market are suggestive of manageable wage cuts only if the unemployment target is not set too low. Such advice is not very encouraging.

Moreover, many researchers believe that the levels of economic growth required to make a major difference to the unemployment problem are unlikely to be sustained by most economies.

The United States and other countries could take other approaches to help reduce their unemployment rates: First, the methods of accumulation and dissemination of information on available jobs and workers could be improved.

Scholars suggested that, following the Swedish model, in which job centers have a nationwide, integrated database of jobs, employers, and available employees. This type of database could reduce the time spent by an average worker on the unemployment roll and thus reduce the unemployment rate.

Second, unemployment agencies could tighten their job search and job acceptance requirements.

Third, there could be improvements to the education and training provided to young people, with a greater focus on vocational skills.

Finally, countries need to ensure that their welfare systems do not provide disincentives to work. Australia, for example, has strengthened the "Mutual Obligation" requirements (e.g., taking part in Work for the Dole projects) that eligible job seekers must meet in order to avoid loss of part of their income support.

There may also be a role for unemployment programs that target various groups of jobless persons.

Unemployment programs aimed at reducing cyclical, frictional, seasonal, and structural unemployment in the United States. Some of these programs aim to change people to match existing jobs while others create jobs to match existing worker skills. The change in focus over time and the short duration of many programs make evaluation difficult.

Many programs appear to do little more than reorder the line of unemployed people, though obviously they have the potential to fulfill an equity function in the labor market.

Another great suggestion is that labor market programs can be a cost effective means of managing the pool of unemployment.

A number of other solutions to the unemployment problem have been advanced in the literature. For example, work sharing, early advanced in the literature. For example, work sharing, early retirement, and reduced migration have been discussed. These policies affect the labor market by reducing the supply of labor. However, they have not won a great deal of support among economists.

 


Top Solutions to the Problems of Unemployment

The following are the proven solutions to the problems of unemployment: 

1. Modification in Industrial Technique

2. Change in the Education System

3. Expansion of Employment Exchanges

4. Full and more Productive Employment

5. Policy Regarding Seasonal Unemployment

6. More Assistance to Self-employed People

7. Population Control

8.  Decentralization of Industrial Activity

9. Industries in Co­operative Sector

10. High Rate of Capital Formation

Let discuss in details

1. Modification in Industrial Technique: Production techniques should suit the needs and means of the country. It is essential that labor-intensive technology should be encouraged in place of capital-intensive technology.

2. Change in the Education System: The educational pattern should be completely changed. Students who have a liking for higher studies should be admitted to colleges and universities. Emphasis should be given to vocational education. Qualified engineers should start their own small units.

3. Expansion of Employment Exchanges: More employment exchanges should be opened. Information regarding employment opportunities should be given to people.

4. Full and more Productive Employment: The main objective of the county’s employment policy should be to increase employment opportunities and the productivity of labor. Government should adopt a policy that provides employment to all people.

5. Policy Regarding Seasonal Unemployment: Seasonal unemployment is found in the agriculture sector and agro based industries. To remove it: Agriculture should have multiple cropping, Plantations, horticulture, dairying, and animal husbandry should be encouraged and Cottage industries should be encouraged.

6. More Assistance to Self-employed People: Most people in India are self-employed. They are engaged in agriculture, trade, cottage and small scale industries etc. These persons should be helped financially, providing raw materials and technical training.

7. Population Control: The growth of population should be checked in order to solve unemployment, problem. Family planning programme should be implemented widely and effectively.

8.  Decentralization of Industrial Activity: Decentralization of Industrial activity is necessary to reduce unemployment. If industrial activities are centralized at one place, there will be less employment opportunities in the under developed areas. So Govt. should adopt such policies which encourage decentralization of industrial activity.

9. Industries in Co­operative Sector: Industries in co­operative sector should be encouraged. Kerala Govt.’ set up a textile mill covering 600 unemployed persons on co­operative basis. This is a novel approach to fight against unemployment. Different State Govt. should take necessary steps in this direction.

10. High Rate of Capital Formation: The rate of capital formation in the country should be accelerated. Capital formation should be particularly encouraged in such activities which generate greater employment opportunities. The capital output ratio should be kept low.

Note: It is believe that there are other factors that may solve unemployment. 

kindly drop your own in our comment box we will review and include it here.

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