Unemployment A Serious Problem
Today unemployment is a serious problem in many parts of the world. According to global economic report, Wikipedia and some other sources, rate of unemployment is around 10 per cent in most parts of the world. This includes countries of Europe and America also. There are many factors responsible for unemployment. First of all, there is not a proper willingness to employ people. Businessmen and industrialists do not want to employ people, they are hiring to get their job done. Let us face it. It is the harsh truth. They want to get the maximum job done, with minimum people hiring. With industrial revolution, when machines were made, they were used in factories to do the work. In a way, they replaced people. The businessmen find them more profiting then hiring employees. Machines never complain, ask for payment, do not get tired and are perfect for the job.
Lack of Jobs
There are not enough jobs and never will be. In the market economy, major work has been taken over by the companies. The options that we are left with are not sufficient. Let us take a look at the jobs available in the market today. You have doctors, engineers, scientists, policemen and software engineer. These are the most high profile jobs available in the market economy. If you are a doctor, engineer or a scientist then you are probably the most respected person in the community and you also have the highest earning as a job holder. But we always focus on income part and never look the dark side of it. According to WHO recommendations you only need 1 doctor per 1000 people. 1 policeman is required for one 400 people. One engineer is enough to get proper works with 100 labours. Similar is the case with other noble professions. This tells what? Everybody is aspiring to become one of them but, there is no requirement for everybody. This is the main reason for unemployment. The problem in poor countries is that people do not find much opportunities except for these jobs as they provide stability in economic terms.
Market Economy is Root Cause for Unemployment
Given the situation of unemployment we can say that market economy is not such a good idea. We must know that All that glitters is not gold. Sometimes, what we expect from an idea, the result is opposite of that. Market economy is supposed to create jobs. It has claimed in the start that it will give jobs to everyone. But that is not the reality. Due to the complexity of market, competition, run for profit and other factors, market economy is taking away jobs instead of employing people. From machines to outsourcing, there are so many ways in which market economy taking away jobs. Today, it is evident in the whole world.
Before market economy was started there were no companies to do mass production. People handled these jobs and produced what they needed. It was more than enough to employ everyone in every country. In fact this was the livelihood of people.
When market economy was started, businessmen came forward and overtook the authority to produce things. They started owning resources of the country. A normal personís livelihood was taken away. However, these businessmen promised that they will give jobs to people. But this idea is not going well. Today, unemployment is a very serious problem. Nearly a decade ago, it also knocked the doors of America. Almost every country today is facing this problem. Businessmen are not keeping their promise of providing jobs. They prefer to earn profits. The common man is suffering immensely because of this. Even those who have a job are not happy with their life. Having a job is like becoming a slave.
Click on this link to study the rise and declination in unemployment rate in the USA
Outsourcing also Generates Unemployment
When industrial revolution started, some countries benefited from it and became rich. Some countries became poor. It was assumed that the people of the rich countries will have a good and safe future. However, something out of the blue happened. Cheap labour was available in poor countries. So, companies started to hire people from poor countries. This is called outsourcing. It really created a problem for the people of rich countries, as they were not getting jobs, simply, because they needed a higher salary.
Personal Gains of Business Owners
In market economy, businesses are run for personal profits. Nobody is interested in the welfare of the society and its people. It is also seen that most billionaires do not have any attachment to their countries. They are living in an artificial environment. Such an environment can be created anywhere. So they have stopped identifying themselves with their or any other country. Hence there is no concern left for the people of the country. This is a very serious problem. With no attachment to country and its people, personal gains become prime. They start to hire less people for more work. Some donít get any jobs, those who get job are exploited. In such a scenario proper employment is not possible.
Theory of Profit Maximization is also Responsible for Unemployment
Companies around the globe do not have a proper training program. If someone does not have a work experience, nobody is willing to hire them and train them for the work. Because of this dilemma, many students do not get any job for first two or three years after completing their education. The number of students employed in placements is often very small.
Theory of Profit Maximization
Profit maximization theory is a big hurdle in employment. Business men just want to earn more and more profit. In this process they are looking for any option to decrease their expenses. The employees become a target in this expedition. People are getting fired for petty issues because of profit maximization goals. Companies are now offering a staff twice or thrice the salary and take work for 10 employees. This kind of situation also leads to unemployment.
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Machines are also Responsible
Machines have taken most of the jobs in last two centuries. Earlier, people used to do simple things and make livelihood out of it. They used to cut woods, carry weights, drive horse and bullock carts and other works like that. Since the invention of machines, these people lost their jobs. Even in factories, they have all kinds of machines for heavy works. This is a major contribution to the problem of unemployment. Machines are a big reason for cutting of the jobs.
Artificial Intelligence and Unemployment
Artificial intelligence also known as AI is going to create even more issues. It is the treat for the future. Machines are not only doing heavy works. They are also being used for fine work. This is taking away the jobs of skilled people. Companies have built self-driving cars and trucks. They are already on the roads in USA. Daily new software is being developed which is making our work easier, but simultaneously the need of people is also lowering in the job section. This is going to create a serious problem of unemployment. In such a scenario, only those who are running a company will survive.
Possibility of Jobs
There can be plenty of work but they are not hiring. If you look at the possibility of work out there, there is a tremendous possibility of job opportunities even in a market economy. But that is only possible when they are willing to hire. Even today, there is tremendous possibility for hiring. But it needs some will for that. This is the major reason for unemployment. We started our journey with machines 2 centuries ago. At the time it seemed like a great idea and undoubtedly it is if it takes proper care of every one. Development has to be inclusive of people not exclusive of them. Only then it means anything.
The Truth about Unemployment
Business owners do not want to pay. Their focus is only on making profits. If they will pay some amount then they will make sure that they have suck the blood out of the employ. But in a market economy, it is likely to happen every time. Everybody is just thinking about themselves only. The solution to this problem requires some big changes.