Unemployment in the Current Economy

Abstract

In this research we will discuss unemployment in the current economy. Unemployment means the lack of job opportunities available for those who have the ability and desire to work. It is a phenomenon that shows imbalance in economic activities, at the same time it is also a social phenomenon because of its social effects on the structure of the Society. Moreover we will discuss the theories of unemployment given by famous scholars.

Table of Contents

Abstract2

Introduction5

Discussion5

Marxist Theory6

Symbolic Interactionism Theory7

Structural Functionalist Theory7

Conclusion9

References10

Unemployment in the Current Economy

Introduction

Unemployment is a major problem in the contemporary world's economy. Unemployment is a situation in which there are no job opportunities available for people who are ready to work. The problem of unemployment is one of the most serious problems that threaten the stability and cohesion of the world's economy, but the causes of unemployment vary from community to community that are economic, social and political causes, all these mentioned causes exacerbates the problem of unemployment. There are negative effects of unemployment seen in all areas of the world which includes crime and delinquency, extremism and violence, drug abuse etc.

Discussion

The phenomenon of unemployment increases the size of poverty, which is also a factor that encourages migration. This is illustrated by the differences in economic level between the exporting countries of migrants, which often causes in lack of development processes, lack of employment opportunities, low wages and living standards, the corresponding rise in living standards, and the need for labor in receiving countries of migrants. As for the economic effects of unemployment at the macro level, everyone knows that the most important indicator of trends in labor demand is the growth of production, and so the slowdown in economic growth means an increase in unemployment rates.

Marxist Theory

The Marxist theory of employment comes from the fact that the formation of a reserve army of labor (unemployment) is the inevitable outcome of capital accumulation, growth of the organic composition of capital, which leads to a relative decrease in the demand for labor on the part of the expanded reproduction.

Karl Heinrich Marx (1818 - 1883) was a very famous Prussian philosopher, historian, journalist, economist, sociologist and a prominent revolutionary socialist. According to Marx, in the framework of a market-capitalist economy it is impossible to eliminate unemployment and to ensure full employment of workers necessary to replace the capitalist system of production planning and socialist

John Maynard Keynes ...