Question

explain any 5 effects of unemployment on the overall growth of an economy.

Answer 1

Effects of Unemployment

1. Loss of Human Resources:

The problem of unemployment causes loss of human resources. labourers waste their maximum time in search of employment.

2. Increase in Poverty:

Unemployment deprives a man of all sources of income. As a result he grows poor. Therefore, unemployment generates poverty.

3. Social Problems:

Unemployment breeds many social problems comprising of dishonesty, gambling, bribery, theft etc. As a result of unemployment social security is jeopardized.

4. Political Instability:

Unemployment gives birth to political instability in country. Unemployed persons can easily be enticed by antisocial elements. They lose all faith in democratic values and peaceful means. They consider that Government is worthless which fails to provide them work.

5. Exploitation of Labour:

In the state of unemployment, labourers are exploited to the maximum possible extent. Those labourers who get work have to work under adverse condition of low wages.

All this tells upon the efficiency of labourers greatly influence the pattern of employment opportunities in the country. Being poor, a person does not make any gainful use of existing resources.