Unemployment is not a challenge peculiar to a particular country or continent; it is a widespread issue that affects every continent. It breeds unfavorable economic realities, income inequalities, societal stratification, living condition disparity, etc.
Unemployment in itself is when a certain individual or group of persons who are eligible and available to work are not engaged in any form of paid employment.
While a large proportion of the employable populace is employed, quite a significant chunk of them are underemployed.
There are many types of unemployment, ranging from cyclical employment to frictional employment, structural employment, underemployment, hidden employment and seasonal employment, amongst others
In this post, I'll be highlighting a few causes of unemployment or underemployment, and proffer solutions on how best to resolve them.
Knowledge gap:
Year in and year out, our colleges churn out lots of graduates. This has saturated the labor market; however, finding the right applicant with the right skill set and requisite knowledge has become an unpleasant reality. Many graduates never get to pick up a skill to add to their degrees; they feel their class of degree is enough to land them that job, only for them to submit countless applications without a positive response from any.
If only the graduate could learn to engage their hands beyond school, it would come in handy. That extra skill could be the deal breaker for you, you never can tell.
Slow economic progress:
An active economy is one that is both growing and developing, and one of the primary indices for measuring the health of a healthy economic system is the quality of its workforce and unemployment rate.
Many industries have been forced to layoff staff because they are not able to keep up with unbearable economic realities. The slightest increase in common denominators like fuel, creates a reverberating effect across many sectors of the economy. An average company that is unable to pay its staff the minimum wage, cannot talk of engaging the best hands.
Once an economy is not progressing at a healthy pace, unemployment is one of the ills of such a system.
Technological advancement:
The world is becoming technological, and so are businesses and other forms of paid employment. The skill set you got the job with may not be relevant to keep you employed. The certificates you used in landing the job would not be sufficient in retaining it.
The advent of technology has not only modified business processes and brought some form of speed in turn around time, it has created a challenge for people who are not able to keep up with the fast rising pace of technological innovation.
Employers are fast embracing technology, employees should follow in that light too, so that they are not pushed out of employment, or replaced by robotics.
Government regulations:
Many times, companies are willing and ready to hire applicants, but certain regulations put in place by the government, such as the minimum wage, welfare packages, bonus and severance package, could be a limiting factor.
Many times, companies are not refusing to employ because they don't want to, but the economic realities make it difficult for them to meet these financial obligations.
If the government creates a business friendly environment, it would curb this menace, greatly.
Unfavorable competition:
Because of income inequality, many homes can't afford the luxury of sending their children or wards to private institutions. Graduates from these private institutions seem to enjoy some level of unfair advantage in the labor market, as they graduate in good time and at a younger age, compared to their public school counterparts who had to finish a four-year program in nine years, thanks to strikes and other forms of civil unrest. And as you already know, recruiting organizations have age deadlines for applicants.
A good educational system that ensures students graduate in record time, would better position them for employment.
THANK YOU FOR READING TO THE END 🤗