Causes of Unemployment in the World, Article Review Example

Unemployment has always remained to be a thorny issue in the World. Unlike in the past were unemployment was a problem of the developing countries in Africa and Asia the trends appear to be changing each and every day. Today countries like United States of America are having an all time high unemployment rates of about 9 per cent and counties like Germany and the rest in Europe are not spared either. Researchers have always come up with answers to explain these trends but their arguments have not been satisfactory.

Studies carried out in the past century have shown different classification of unemployment based on class and skill. Low skilled workers are seem to aim at employment opportunities that they may not qualify in the event they look forward to be recognized like their counterparts who are highly skilled (Rubart 169).

The financial crisis according to Marx is to blame for increased unemployment levels in the World. According to new United States Study the financial systems began dwindling since 1997 and have caused much unemployment and suffering. The economic problems in South East and East Asia lead to these once high growth and full employment economies. This has in the past months led to doubling and tripling (Marx para. 1). United Nations reiterated that the International community had committed itself to ensure lasting solution to these unemployment issues. That was then but now these countries are faced by the same problem of unemployment.

The World unemployment has remained dull in the face of what many are calling economic downturn that has reduced many to paupers in when organizations such as International Monetary Fund and World Bank claim to be doing so much to alleviate this menace in the World. But how can they be in a position to solve a problem that to some extend they have caused or even that people assume it is caused by economic downturn. To understand the real cause of unemployment in the World is to be in a position to analyze the issues at the origin. The economic systems that the World appears to be pursuing in the name of democracy seems to be the main cause of unemployment since this has been seen to have a multiplier effect in the whole economy. Take for instance the selfish economic policies that are only based on selfishness that have deprived not only the people but also Mother Nature resources that could have resulted to creation of employment.  Since these businesses are making exorbitant profits in the name of free market economies this has resulted into inequalities and increased unemployment levels in the world.

Others will talk about the increased population which increasers geometrically with the resources increasing in arithmetic progression. The idea of finite resource base against the infinite needs and increasing rate of population is not new but was brought out centuries ago by Malthus (Souden, Wringley & Malthus 17).Although his argument have in the past been supported by economists and like minded scientists there is need to undertake further research on the issue on the real but not perceived cause of unemployment.

Unemployment also posses another feature that needs to be researched well that is the issue of underemployed and also underpaid. Many people in the World have employment but claim that they have no employment. Take for instance someone who is a farmer and wakes up daily very early in the morning to go the farm but when you ask him whether he is employed he says, ” No.” There is need for more advanced research on these issues. For example when we say that someone is underpaid or even underemployed what is the clear cut line between the one who is well paid and the one we can refer to as underpaid (Ghose, Majid & Ernst 78).

Although the past century has done a lot in multiplication of wealth there is a big challenge in addressing poverty, social justice and unemployment in the world. Policies have been proposed to tackle the unemployment rate or to tackle the unemployment and underemployment challenges facing the World but some of the theories put forward have in the past aggravated the problem (Jansen Et al. 78). The policies put forward by organizations like World Bank have in many occasions failed miserably because they are based on historical judgments and assumptions that are not always true. To use the development for United Kingdom in Asia is to miss the point because these countries exist in very different times.

The fast pace of globalization and technological advancement can not be left behind in its cause of unemployment both in the developing and developed countries. Take for instance a company located in New York City and to cut its overall cost out-sources its services from less developed countries to cut on cost. This possesses a threat to employment opportunities in the developed countries. For instance an architect who is contracted to design and monitor a building in Chicago when he is in Lagos.

Many researchers have found that classical unemployment is as a result of the real wages exceeding the market value hence leading to increased supply of work force. Economists who hold these proposals as truth believe that with the setting of minimum level may create classical unemployment. This argument has some traces of truth although more research need to done to explain how low wages may lead to unemployment (Holmlund Et al 24). However, from my own point of view the low income may discourage people from undertaking some jobs hence leaving them unemployed or if they take these jobs they remain underemployed which is also another problem main challenge interrelated to unemployment facing the world today.

The cyclical unemployment is caused by the decline of use of good and services and is the argument that has been used in the past time and again to explain the causes of unemployment but as said earlier there are many causes of unemployment and underemployment that are not yet documented hence the need to focus on this issue widely with a clear mind. Take for example someone who fails to be employed because he sees the work that he is supposed to do as dirty and not interesting to him but he has all the qualities needed for the job; when doing the overall classification is the person above unemployed? If we assume that he is unemployed then we need further classification on the unemployed. Moreover, there is a challenge in knowing who really has his job but refuses to do the work (tutor2u.net/economics para.2).

What happens when countries like Iraq, Iran and Arabic countries which produce large amounts of fossil power in the world economy reduce willingly to supply the oil creating increased demand for the power hence driving industries out business resulting to unemployment.

There is also what is referred to as frictional unemployment which is as a result of people changing their jobs now and then. By the time the employer gets another employee he takes some time and the person who left employment might take sometime before being employed. Frictional employment is a feature that needs to be studied widely and researched in the best way possible.

In conclusion this is an area that is wide and requires expertise and research aimed at clarifying the thorny issues that are important in documenting demographic and economic data that can be useful in planning and development and improved research and development (Arestis, Baddeley & McCombie 249). To undertake this study well requires an open mind; open to new ideas and not maintaining the status quo or accepting without analyzing and testing using hypotheses. An in depth analysis is meant to categorize and come up with facts about employment and unemployment. In addition there is need for studies to be carried out people encouraged to love their jobs and to learn to change the behavior of being nomads in employment. To prevent nomadic employment requires the efforts of the managers who are supposed to ensure the workers are not mistreated or segregated against or not even paid well. These challenges of employment the world faces are real and require to be handled with care and zeal. Politician and the ruling class in countries should endeavor share the resources in more equitable manner and create policies that create employment and safeguard Mother Nature and the environment.

Works Cited

Arestis, Phillip. Baddeley, Michelle. McCombie, J.s. L. Economic growth: new directions in theory and policy.  Edward Elgar Publishing, 2007

Causes of unemployment. 29 Sp. 2009. 4 Oct. 2009.<http://tutor2u.net/economics/content/topics/unemp/unempcause.htm>

Ghose,Kumar,Majid, Nomaan and Ernst, Christoph. The global employment challenge International Labor Office, 2008.

Holmlund, Bertil, Organization for Economic Co-operation and    Development. Dept. of Economics and Statistics. Unemployment Persistence and Insider-outsider Forces in Wage Determination, Organization for Economic Co-operation and Development. Dept. of Economics and Statistics. OECD, 1991.

Jansen, Marion, Lee, Eddy, International Labor Force, World Trade Organization. Trade and employment: challenges for policy research : a joint study of the International Labor Office and the Secretariat of the World Trade Organization. International Labor Organization, 2007

Marx, Kerstin. Asia: Crisis causes massive unemployment. 12 Aug. 2007. 4 Sep. 2009.<http://www.twnside.org.sg/title/mass-cn.htm.>

Rubart, Jens. The employment effects of technological change [electronic resource] heterogenous labor, wage inequality and unemployment / Jens Rubart.  Berlin ; : New York : Springer, c2007.

Souden, David, Malthus, Thomas Robert and Wringley, Anthony. The Works of Thomas Malthus. University Library: Pickering, 1986.