How increased unemployment is playing a role on the increasing poverty Essay

How increased unemployment is playing a role on the increasing distress levels - Essay ExampleFor instance, the level of unemployment in China is 4.3 % bit that of Japan is at 4.5%, nevertheless the unemployment rate of these countries does non remain constant it keeps changing with time (trading economics, 2011). Below is a graph indicating the difference in levels of poverty among countries. Fig 1 2011 unemployment rates of different countries. Needless to say, there are a number of reasons that cause unemployment in the world. First, some individuals lack the required skills and noesis to tackle tasks, hence hindering their chances of acquiring a job. Secondly, the welfare payments and unemployment insurance are believed to contribute to the increasing levels of unemployment. The unemployed continue benefiting from these governments assisted programs, hence fitting reluctant to search for jobs. This paper will discuss the issue of unemployment, its impact to the nightclub in causing poverty, and the possible solutions at length. Major impact of unemployment to society The Increasing levels of unemployment are continuously contributing to the level of poverty among nations, which negatively affects the economy and the society of these nations as well. There are various types of unemployment. Cyclical unemployment is ace of them, which is influenced by the business cycle, for example, the higher the growth of domestic product, the lower the levels of unemployment, and vice versa (Hartley, 2010, p.29). Structural unemployment involves launching new products in the market, therefore changing the demand of definite goods. In return, unemployment rate in certain sectors increases, whilst jobs are created in other sectors. According to Kim (2010, p.57), one third of the worlds... Unemployment as an Economic ProblemUnemployment posterior be defined as the number of people in a nation without jobs, including those that are seeking for employment (OECD, 2003, p.32). Unemployment is a problem that affects many countries, to an outcome of reducing productivity and loss of income opportunity. When the level of unemployment is high, the growth domestic product is lower compared to when the levels of unemployment are low. On the other hand, when the growth of domestic product is low, the levels of unemployment increase, the accompaniment standards of individuals are reduced, and the nations productivity decreases.Unemployment also contributes to loss of human capital, as the unemployed individuals do not contribute their skills and knowledge to the workforce. Moreover, unemployment does not totally contribute to poverty, but it also reduces the levels of consumption and the ability of purchasing, and as a result, slowing down the potential of the market. Nevertheless, unemployment levels differ among different countries, taking different forms however, the create nations are highly affected by the unemployment issue compared to the advan ced economies (OECD, 2003, p.32). For instance, the level of unemployment in China is 4.3 % while that of Japan is at 4.5%, nevertheless the unemployment rate of these countries does not remain constant it keeps changing with time (trading economics, 2011). Below is a graph indicating the difference in levels of poverty among countries. Needless to say, poverty increases as the level of unemployment increases this is unvarnished since the unemployed have no source of income, making them to struggle in providing basics needs for their families.