Saturday, 15 September 2018

Essay on Unemployment in English 300 Words

Essay on Unemployment in English 300 Words

Essay on Unemployment in English

Unemployed individuals are unable to earn money to meet financial obligations. Failure to pay mortgage payments or to pay rent may lead to homelessness through foreclosure or eviction. The loss of health insurance benefits that comes with unemployment increases susceptibility to malnutrition, illness, mental stress, and loss of self esteem finally leading to depression.

Some hold that many of low income jobs are not really a better option than unemployment with a welfare state (with its unemployment insurance benefits).

But since it is difficult or impossible to get unemployment insurance benefits without having worked in the past, these jobs and unemployment are more complementary than they are substitutes. These jobs are often held short-term, either by students or by those trying to gain experience; turnover in most low-paying jobs is high, in excess of 30%/year.

Unemployment insurance keeps an available supply of workers for the low-paying jobs, while the employers' choice of management techniques (low wages and benefits, few chances for advancement) is made with the existence of unemployment insurance in mind. This combination promotes the existence of one kind of unemployment, frictional unemployment.

Another cost for the unemployed is that the combination of unemployment, lack of financial resources and social responsibilities may push unemployed workers to take jobs that do not fit their skills or allow them to use their talents. Unemployment can cause under employment. This is one of the economic arguments in favor of having unemployment insurance.

This feared cost of job loss spur psychological anxiety, weaken labor unions and their members sense of solidarity, encourage greater work effort and lower wage demand and or abet protectionism. This last means efforts to preserve existing jobs (of the insiders) via barriers to entry against outsiders who want jobs, legal obstacles to immigration and or tariffs and similar trade barriers against foreign competitors.

The impact of unemployment on the employed is related to the idea of Marxian unemployment. Finally the existence of significant unemployment raises the oligopsony Power of one’s employer: that raises the cost of quitting one’s job and lowers the probability of finding a new source of livelihood.



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