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Background and Analysis

Webster’s defines the unemployed as those not engaged in gainful occupation; furthermore it indicates those of the workforce who are actively seeking employment but unable to find any. Since the Second World War, full employment has been a stated goal for many countries, and several programs have been put in place attempting to achieve it. Some studies suggest that increased unemployment has been associated with the cyclical weakness of the economy, although the persistently high figures of the past decade have been attributed to the continuing structural change in the labor market. The economic downturn nearly two years ago has seen a spike in unemployment as one characteristic of the recession. Some economists say that there is still hope to see unemployment rates diminish, but that it may take years to return to normal figures.

According to the CIA World Factbook, the United States ranked 91st in the world for unemployment, with a jobless rate of 7.2% in December of 2008; the Bureau of Labor Statistics reported that it rose to 9.3% in August. Smaller and proportionally wealthier countries such as Qatar, Monaco and Andorra boast virtually no employment, while those such as the African nation of Djibouti, with few natural resources and little industry, display unemployment rates of nearly 60% in cities and over 80% in rural areas. It is often difficult to make concrete estimates, as the figures for many countries are out of date or unavailable.

In developed nations, when unemployment renders people unable to pay rent or mortgages it may lead them to homelessness because of foreclosure or eviction. The unemployed are more likely to be depressed, malnourished, lose self-esteem or suffer from mental stress or illness. In developing nations in Africa, Asia, Central and South America underemployment is a more fundamental and widespread problem. This occurs when people are employed only part time or work at inefficient or unproductive jobs, earning extremely low income that is not enough to meet their needs. Unemployment and underemployment are often observed along with increases in migration from rural areas to urban areas, characterized by an influx of workers as the demand for labor decreases.

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