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What is Unemployment?
By: Richa Sinha
In economics, unemployment refers to the condition and extent of joblessness within an economy, and is measured in terms of the unemployment rate, which is the number of unemployed workers divided by the total civilian labor force. Hence, unemployment is the condition of not having a job, often referred to as being "out of work", or unemployed
The terms unemployment and unemployed are sometimes used to refer to other inputs to production that are not being fully used, for example, unemployed capital goods.
The history of unemployment is the history of industrialization. It was not considered an issue in rural areas, despite the "disguised unemployment" of rural laborers having little to do, especially in conditions of overpopulation.
The Office for National Statistics (ONS) produces official estimates of unemployment using the International Labour Organization definition. Under this definition people aged 16 and over are unemployed if they are out of work, want a job, have actively sought work in the last four weeks and are available to start work in the next two weeks; or are out of work, have found a job and are waiting to start it in the next two weeks.
Unemployment levels are increasing dramatically in many parts of the world. There are several causes behind this increasing rate. But the main reason for the high level of unemployment is technological progress. In a fewer year far less working hours are needed to produced all the goods that are required, hence there will be less demand of labour. This can lead more to the raise of unemployment ratio.
On the other hand, traditionalism, ignorance and over population etc are some other major cause that led to the raise of unemployment.
Today, unemployment data are useful for a variety of reasons. The government use unemployment along with other labour market indicators for macro-economic and labour market management. Data are also supplied to a range of international organizations such as the European Central Bank. In the social policy domain, unemployment is used as an indicator of relative hardship.
Today, unemployment is the major crisis worldwide, to keep check on it is very much essential, it is you, who can change the word unemployment into employment.