Unemployment Problem

Unemployment is a great concern in Bangladesh. Every year hundreds of thousands student are coming out from college and university. Though it is one of the major responsibilities of the Government to provide job to those young generation but the Government is failed to meet the job demand among the large population. Only a tiny fraction of total jobless is managed by different government offices and private organization but a majority remain unemployed. Unemployed workers” are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work.

Individuals who are actively seeking job placement must make the effort to: be in contact with an employer, have job interviews, contact job placement agencies, send out resumes, submit applications, respond to advertisements, or some other means of active job searching within the prior four weeks. Simply looking at advertisements and not responding will not count as actively seeking job placement. Since not all unemployment may be “open” and counted by government agencies, official statistics on unemployment may not be accurate. Causes of Unemployment

Historically for a long time British administration was the main cause of this problem. After ending Mughol regime when British came in Sub continent (India, Pakistan, Bangladesh) they started to do business, they exploited the sub-continent. They did not establish any Industry which is helpful to remove the unemployment problem. Though some Industry was made but all of them were placed in Indian Territory. So Bangladesh region was neglected from the British period. After ending British rule in 1947 Pakistan adopted the same rule they established all kinds of Industry in West Pakistan not in East Pakistan.

As a result of Pakistani monopoly rule we saw the freedom fighting war in 1971. After nine months continuous war it is divided and named East Pakistan as a Bangladesh. After 1971 Bangladesh has been facing political crisis badly. As a result no government can take long term massive step to remove the unemployment problem. Within 37 years Bangladesh has experience about eight new governments and two assassination incident at the top level country leader. So now political crisis is one of the major causes of unemployment problem in Bangladesh.

Among others two major parties BNP and Aowamileague are busy to gain only political power. None of these parties are trying to do anything to solve the country’s major problem “UNEMPLOYEMENT PROBLEM” Recent attitude and activity of political parties are very hateful to the common people. By election if a party goes to power then another party cannot accept that, they do not go to parliament they do not express constructive opinion in the parliament which is helpful for common people. But they should not do it. May be there is some discrimination of the election result but there are overall acceptation of the common people.

To think about greater welfare of the country they should keep patient, they should support the Government they should assist the Government to take the long term strategy to remove the unemployment problem. Types of Unemployment Frictional unemployment Frictional unemployment is the time period between jobs when a worker moves from one job to another. Frictional unemployment is an example of a productive part of the economy, increasing both the worker’s long term welfare and economic efficiency, and is also a type of voluntary unemployment.

Frictional unemployment is always present in an economy, so the level of involuntary unemployment is properly the unemployment rate minus the rate of frictional unemployment, which means that increases or decreases in unemployment are normally under-represented in the simple statistics. Natural rate of unemployment The “natural” rate of unemployment is defined as the rate of unemployment that exists when the labor market is in equilibrium and there is pressure for neither rising inflation rates nor falling inflation rates. Classical unemployment

Classical or real-wage unemployment occurs when real wages for a job are set above the market-clearing level, causing the number of job-seekers to exceed the number of vacancies. Cyclical unemployment Cyclical unemployment, also known as deficient-demand unemployment, occurs when there is not enough aggregate demand in the economy. Cyclical unemployment is caused by a business cycle recession, and wages not falling to meet the equilibrium level. Cyclical unemployment rises during economic downturns and falls when the economy improves.

Keynesians argue that this type of unemployment exists due to inadequate effective aggregate demand. Demand for most goods and services falls, less production is needed and consequently fewer workers are needed, wages do not fall to meet the equilibrium level, and mass unemployment results. With cyclical unemployment, the number of unemployed workers exceeds the number of job vacancies, so that if even all open jobs were filled, some workers would remain unemployed. Structural unemployment Structural unemployment occurs when a firm or industry closes down due toa parmanent decline in the demand for its products.

It also occurs when labor market is unable to provide jobs for everyone who wants one because there is a mismatch between the skills of the unemployed workers and the skills needed for the available jobs. Structural unemployment is hard to separate empirically from frictional unemployment, except to say that it lasts longer. As with frictional unemployment, simple demand-side stimulus will not work to easily abolish this type of unemployment. Costs of Unemployment Lost Prodoction The single largest costs or unemployment is losi production. Unemployment is thus negatively related with GDP.

It has been estimated that 1 extra point of un ployment redusec GDP by 2 percent The Distribution Impact The costs of unployment are not borne evenly by different sections of the population. It is the unemployrd people who suffer most. In general unemployment hits the poor people harder than the rich. Lost Tax Revenue Employed people pay taxes on their wages. Society in general benefits from the revenue. Increased Unemployment means loss of tax revenue. Social and psychological Impact Idleness and lrngthy periods of unemployment makes people rusty and less productive.

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