A perfect storm of unemployed youth, political gridlock in Europe and the United States, and declining energy prices are causing more economists to warn that an economic slowdown could cause upheaval in developed and emerging nations.
Those who have been unemployed for more than two years will soon be required to do community work in order to maintain eligibility for state unemployment benefits, the British Prime Minister announced yesterday.
David Cameron said yesterday that anyone who has been unable to find “sustainable employment” would be required to do at least 26 weeks (6 months) of community work, lasting 30 hours a week, in order to secure continued receipt of the Job Seekers Allowance, a form on unemployment benefit.
Unemployment and poverty are the two major challenges that are facing the world economy at present. Unemployment leads to financial crisis and reduces the overall purchasing capacity of a nation. This in turn results in poverty followed by increasing burden of debt. Now, poverty can be described in several ways. As per the World Bank definition, poverty implies a financial condition where people are unable to maintain the minimum standard of living.
In the set up of a modern market economy, there are many factors, which contribute to unemployment. Causes of unemployment are varied and it may be due to the following factors:
To receive unemployment benefits, an individual is required to file for unemployment by registering with a regional unemployment agency.
Unemployment can be filed by individuals who:
An unemployment office is an agency that aids individuals who are jobless to receive unemployment benefits on the condition that they would actively search for jobs. Unemployment offices are government agencies that offer regular, extended and disaster (natural calamity) unemployment benefits. Usually, these agencies enforce state or national unemployment laws. So, an unemployed person’s eligibility and period to avail unemployment benefits and insurance are established by the governing state laws.
Unemployment is a status in which individuals are without job and are seeking a job. It is one of the most pressing problems of any economy especially the underdeveloped ones.This has macroeconomic implications too some of which are discussed below.
The unemployed workforce could be utilized for the production of goods and services. Since they are not doing so, the economy is losing out on its output.
