Exploitation and Political Unemployment in Democratic Organizations

Questions: Associate the features of audience, purpose, and text with various genres. Recognize the elements and correct use of a thesis statement. Recognize how to organize ideas with transitional words, phrases, and sentences. Incorporate relevant, correctly documented sources to substantiate claims. Apply the writing process to develop various writing genres. Write clearly and concisely about selected topics using proper writing mechanics. Use technology and information resources to research selected issues for this course. Answers Introduction: The purpose of this report is to draw the causes, effects and repercussions of unemployment. Unemployment is a major concern which is prevalent in the society. The precise definition or characterization of unemployment refers to the state of not being in any engagement relating to employments. In simple words, it refers to individuals who do not have jobs or who are devoid of works. It happens anyone who constitutes the workforce, is actively in search for work but unable to find one. Here, workforce implies about people who desire to work. However, it excludes people who are, for instance, retired, disabled and not looking for any position of work. Discussion: Major Cause of Unemployment: Unemployment stems from a variety of reasons and grounds. The main reasons or basis of unemployment are explained as under. Structural Unemployment: Structural unemployment refers to the state of affairs in an industry when there is a long-term decline in demand which results in lesser jobs since the application for labour experience a scarcity. The examples are unemployment as caused by foreign competition (changes in comparative advantage). Employment in the line of production being machinated, online marketing, banking, etc. Structural unemployment is rampant when there is a disparity between the skills and requirements of a new job (Shahidi et al., 2015). This predicament occurs due to globalization and other factors. Globalization leads to an alteration in models of work between nations. For example, Britain has lost the trade advantage it once enjoyed in the domain of motor and audio-visual industry. The manufacturing sector of UK has lost jobs due to shift in production to lower-cost areas in Eastern Asia and Europe (Bevia et al., 2016). Frictional Unemployment: This type of unemployment takes place in unavoidable circumstances when there is a delay in finding new employment in a free market. It may also be connoted as search employment as it refers to the time taken for the new job. For instance, a fresh graduate does not find a job straightaway but takes the time to search for the new role. This period of searching is termed as frictional unemployment (Cevik et al., 2013). Other Causes of Unemployment: Voluntary unemployment: This happens when people choose to remain in a state of unemployment rather than engaging themselves in new jobs available. For instance, if benefits are sufficient then people may be complacently stayed with benefits instead of getting to work. Cyclical unemployment: Cyclical unemployment occurs when the economy of a state functions in full capability. For instance, in the event of a recession, the Aggregate Demand will fall resulting in negative economic growth and decline in overall output. In recession unemployment is on a high as the number of layoffs increase. Due to decline in output, firms employ fewer personnel because the productivity is less (Ross Mirowsky, 2013). Economic effect of unemployment: Unemployment poses serious repercussion in the economic perspective. The detailed argument is laid as under. Recession: A recession effects from where the rise in unemployment results in less growth and a significant fall in consumer spending thereby affecting business thus laying off of workers along with losses. It transpires when gross domestic product reports a loss in two or more quarters in an economy. In this case, the consequences of the economy are witnessed in the form of fall of revenue and sales, high unemployment and stock prices. The revenue and business sales experience steep decline. This results in non-expansion of the business. Due to the dearth in demand, businesses reports losses and hence strive to cut down on costs that are reducing wages, remuneration, curb in recruitment drives which hinder unemployment. Decrease in GDP means that the firms are not immune to recession and the fact that the firms instigate massive layoffs, companies being bankrupt to name a few. In the US, recession occurred in first quarter of 2008. The economy contracted by 7% which further dipped t o 6% in next quarter. The US economy lost over 16,000 jobs resulting the administration to undertake a serious evasive drive to stabilize the situation (Pissarides, 2013). Hike in financial cost: Lack of unemployment has the adverse effect on the economy of a state. In this case, the government suffers from an outflow of funds. In some states, the government pays the unemployed certain financial doles. Unemployment leads to drop in collective national income and follows with the decrease in production. Hence, the nation not only deals with a lack of national income but also added cost (Pozega et al., 2012). Spending Power: The expenses of an unemployed individual and the family concerned dwindle radically which implies that they would rather save than spend the funds, thereby resulting in an unfavorable effect on the economy. Individualistic effect of unemployment: Barring effects of unemployment over society the same has consequences upon an individual or person. It not only affects a person but also the family concerned and society, by and large. The key aspects are mentioned below. Mental health issues: Mental health of an individual takes a severe hit. Feeling of depression, hopelessness, low self-esteem, etc. crops up which further complicates ones mental aspects. With the lack of income and frustration associated with it, unemployed individuals develop a negative attitude towards life and purpose of life seems to be lost. Dejection, lack of confidence, inadequateness is normal emotions in this regard. The standard of living: During unemployment the antagonism for work and negotiation skills decline resulting in the decrease of standard of living of people with reduced salary and incomes (Milner et al., 2014). Gap in employment: A prospective job-seeker finds the gap in his profile owing to lack of jobs. Employers are apprehensive of recruiting people who had been out of work in spite of no fault of the individual, whatsoever (Decreuse Granier, 2013). Lastly, the unemployed people are not able to use their existing skill-set to use and by the lack of opportunities, the person most likely, loses some of those skills. Conclusion: The above discussion profoundly portrays about different facets of unemployment and the rationale and reason behind that. It has been categorically mentioned on what leads to unemployment and repercussions associated with that. Instances reveal how unemployment had stalled growth and development of industries in the US and UK. The varied causes of employment rise from social and economic elements. The author reflects on long-term effects of unemployment in the parlance of society and individual concerned. In fine, it is seen that redundancy plagues the society and economy, and it should be eradicated efficiently and competently. References: Bevia, C., Corchn, L. C., Romero-Medina, A. (2016). Relinquishing Power, Exploitation and Political Unemployment in Democratic Organizations.Exploitation and Political Unemployment in Democratic Organizations (January 19, 2016). Cevik, E. I., Dibooglu, S., BariÃ…Å ¸ik, S. (2013). Asymmetry in the unemploymentoutput relationship over the business cycle: evidence from transition economies.Comparative Economic Studies,55(4), 557-581. Decreuse, B., Granier, P. (2013). Unemployment benefits, job protection, and the nature of educational investment.Labour Economics,23, 20-29. Milner, A., Page, A., Lamontagne, A. D. (2014). Cause and effect in studies on unemployment, mental health and suicide: a meta-analytic and conceptual review.Psychological medicine,44(05), 909-917. Pissarides, C. A. (2013). 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