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Unemployment & its Social Effects

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Mohanad Al-Fuhaid

on 13 December 2014

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Transcript of Unemployment & its Social Effects

Unemployment and Its social Effects
What is unemployment ?
Types of unempoyment + Brief description
Global unemployment
Unemployment in saudi arabia
What is Unemployment ?
Unemployment is defined as a situation where someone is not able to get a job but he is actively seeking and searching for a job.
Cyclical unemployment
Cyclical unemployment is the change in job availability due to upswings and downswings in the business cycle. When the economy is robust and booming, cyclical unemployment is at its lowest. When the economy is in a recession, cyclical unemployment is at its highest.
unemployment in Saudi Arabia
Unemployed persons are unemployed by choice.
Most of the unemployed are young first time job seekers.
Female unemployment numbers are inaccurate.

Social effects of unemployment in Saudi Arabia
Late marriage of young couples leading to lower fertility rates.
Divorce chance is higher by 40% when the husband is unemployed.
Increasing crime rates with increasing unemployment rates through thee past 20 years.
30% of criminals and thieves are unemployed, other 70% are people paid below 3,000 SR/Month

Unemployment and its social effects (Worldwide)
The personal and social costs of unemployment include severe financial hardship and poverty, debt, homelessness and housing stress, family tensions and breakdown, boredom, alienation, shame and stigma, increased social isolation, crime, erosion of confidence and self-esteem, the atrophying of work skills and ill-health.
Unemployment falls disproportionately on already disadvantaged groups in society.
During a long period of unemployment, workers can lose their skills, causing a loss of human capital. Being unemployed can also reduce the life expectancy of workers by about seven years.

Unemployment & its Social Effects
Types of unemployment:
1- cyclical unemployment.
2- frictional unemployment
3- structural unemployment
4- classical unemployment
Frictional unemployment is the time period between jobs when a worker is searching for, or transitioning from one job to another. It is sometimes called search unemployment and can be voluntary based on the circumstances of the unemployed individual.
Structural unemployment is a form of unemployment where, at a given wage, the quantity of labor supplied exceeds the quantity of labor demanded, because there is a fundamental mismatch between the number of people who want to work and the number of jobs that are available.
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.
frictional unemployment
structural unemployment
classical unemployment

Overall Social Effects
The Brotherhood of St Laurence’s Life chances study (Gilley 1993)
The study found that compared with families who had an employed parent, more mothers in families in which there was no parent employed reported:
Serious health problems of young children.
Serious problems for themselves.
Serious disagreements with the partner.
Serious financial problems and serious problems with housing
Poverty and Hardship
unemployed people experience hardship and a decline in their standard of housing, diet, clothing and health care with rapidity.

Unemployment and Health
There is a strong relationship between unemployment and health.
This occurs for some specific causes of death (such as diabetes, pneumonia, influenza and bronchitis).
Also, for a number of specific chronic illnesses.
In addition to certain forms of mental illness, such as depression.

Long-term harm for children and young people
In 1997 702,800 children or 17.9 per cent of children under 15 years of age were in families with no parent in paid employment.
This is not only immediately distressing for the children’s lives but is also likely to have long term consequences for their educational, employment and social futures.
People with low education and skills are more likely to be unemployed or to have low wages.

Long-term harm for children and young people
School completion is lower for young people with parents who have low education and an unskilled occupational background (and thus who are more likely to be unemployed).
Studies found that teenagers with lower levels of well-being (such as health and sociability) have fathers or both parents with no paid work.

Family stress arising from poverty and unemployment has been found to be associated with children’s behavioral problems and with their adjustment over time.
Unemployment is also contributing to substantial alienation of a large number of teenagers and young adults.

Long-term harm for children and young people
Social Division
There is increasing division between those families with children with both parents in the paid work force and those with no parents with paid work.
The wives of unemployed men have much higher rates of joblessness than wives of employed men.
Unemployment may also contribute to greater divisions according to where people live.

Unemployment in the Regions of the European Union in 2010, According to Eurostat.
Unemployment Rate in the U.S. by County in 2008
21st Century
21st Century
21st Century
The official unemployment rate in the 16 EU countries that use the euro rose to 10% in December 2009 as a result of another recession.
Latvia had the highest unemployment rate in EU at 22.3% for November 2009.
Europe's young workers have been especially hard hit.
In November 2009, the unemployment rate in the EU27 for those aged 15–24 was 18.3%.
For those under 25, the unemployment rate in Spain was 43.8%.
Unemployment has risen in two-thirds of European countries since 2010

Into the 21st century, unemployment in the United Kingdom remained low and the economy remaining strong, while at this time several other European economies – namely, France and Germany (reunified a decade earlier) – experienced a minor recession and a substantial rise in unemployment.
The unemployment rate of Britain's young black people was 47.4% in 2011.
2013/2014 has seen the employment rate increase from 1,935,836 to 2,173,012 showing the UK is creating more job opportunities and forecasts the rate of increase in 2014/2015 will be another 7.2%.

21st Century
21st Century
An 26 April 2005 Asia Times article notes that, "In regional giant South Africa, some 300,000 textile workers have lost their jobs in the past two years due to the influx of Chinese goods“.
The increasing U.S. trade deficit with China cost 2.4 million American jobs between 2001 and 2008.
From 2000 to 2007, the United States lost a total of 3.2 million manufacturing jobs.

About 25 million people in the world's 30 richest countries will have lost their jobs between the end of 2007 and the end of 2010 as the economic downturn pushes most countries into recession.
In April 2010, the U.S. unemployment rate was 9.9%.
In April 2012, the unemployment rate was 4.6% in Japan.

“Nearly 75 million youth are unemployed around the world, an increase of more than 4 million since 2007. In the European Union, where a debt crisis followed the financial crisis, the youth unemployment rate rose to 18% last year from 12.5% in 2007” — (2012 news story, Financial Post).

We Hope you Enjoyed our presentation
Have a nice day
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