Economic and social consequences of unemployment

Economic and Social Consequences of Unemployment :-

Unemployment is a biggest issue which the economy faces today and a hurdle in the growth and development of the economy. There are many type of unemployment (Rural unemployment; Disguised unemployment; Seasonal unemployment; Urban unemployment; Industrial unemployment; Educated Unemployment) Which are existed in India and the root cause of problems like poverty in India.

Thus the economic consequences of unemployment are :-

– Non utilisation of manpower; human resources are not fully utilised. It is sheer wastage for the society.

– Loss of output in the economy because unemployed persons only live as consumer not as producers.

– Thus living only as consumer will add up the consumption not the production. They don’t earn nor do they save for investment; thus capital formation is low.

– Due to disguised unemployment there is a low level of productivity which implies lesser surplus from an output for future generation.

Thus these consequences leads to not only low level of present output but also the low level of future output because of lesser surplus for future investment.

* Social Consequences :-

– Unemployment leads to low quality of life which leads to the state of perpetual sufferings.

– Higher the degree of unemployment; higher will be the inequality in the distribution of income and wealth.

– Unemployment divides the Soviet into have or have not. Accordingly class conflict that compounds the problem of social unrest.

– Unemployment leads to the vicious circle in society by causing problems like illiteracy; poverty; etc.

Thus social consequences of unemployment is that it is a social menace as it denies social justice and enhances social unrest by increasing the disparity between have and haven’t.

Thus unemployment effects a lot to the economically and socially and still is a reason of concern for our leaders to how to get rid of this problem.

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