What is the effect of unemployment in the development of a country?
Answers
Unemployment is an economic condition in which individuals actively seeking jobs remain un-hired.The problem of unemployment is a world-wide reality; the developed countries as well as the developing countries suffer from it.
The Causes and Effects of Unemployment
Unemployment is expressed as percentage of the total available work force that is unemployed, but actively seeking employment and willing to work which is known as the unemployment rate. (>>>>>>>>>>>) The Bahrain’s unemployment rate has dropped from an estimated average of 16.4 percent in 2006 to 3.7 percent in 2010 (Minister of Labour Dr. Majeed Al Alawi, 2010).
Basically there are five types of unemployment: frictional unemployment, cyclical unemployment, structural unemployment, real wage or classical unemployment, and seasonal unemployment. The level of unemployment varies with economic conditions and other circumstances. The causes of unemployment include increased population, rapid technological change, lack of education or skills and rising cost lead to financial, social and psychological problems.
Unemployment leads to wastage of manpower resource. People who are asset for the economy turn into a liability.