Unemployment

Warming-up.

What kind of job do you want to get in the future?

What kind of tasks will you have to do?

Do you think what job someone has determines who they are?

What is the most dangerous job?

How difficult is it to get a job in your country?

What company is the best to work for?

Read the following text. What does the text say about the factors that lead to unemployment? What are future unemployment predictions?

Make sure you understand the meaning of the following words and word-combinations:

the unemployment rate

to experience

the labour force

youth unemployment

statistical measurement

vulnerable

to predict

to decline

unskilled occupations

remain without a job

a substantial period of time

to maintain a sense of competence and self-worth

wage subsidy programmes

social security payments

Unemployment

The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labour force. During periods of recession, an economy usually experiences a relatively high unemployment rate.

Youth unemployment is the unemployment of young people, defined by the United Nations as 15–24 years old. An unemployed person is defined as someone who does not have a job but is actively seeking work. In order to qualify as unemployed for official and statistical measurement, the individual must be without employment, willing and able to work, of the officially designated 'working age' and actively searching for a position. Youth unemployment rates tend to be higher than the adult rates in every country in the world.

More than 3 million people will become unemployed worldwide in the next two years, making existing jobs vulnerable and fuelling potential social unrest as the global economy slows.

Changes in technology and in the organization of production affect demand in labour market and often lead to long-term, sometimes permanent, unemployment. For instance, technological innovations always cause some industries to decline, as new ones develop and expand. When the automobile was invented, there was a steady drop in the demand for goods and services related to horse – drawn vehicles. In the process, many workers (blacksmiths, wagon makers) were forced out of work. Unless these people acquired new skills or were willing to work for lower wages in unskilled occupations, they could remain without a job for a substantial period of time.

How well people cope with unemployment depends largely on the social and institutional support available to them. This includes the support of family and friends, who can help the unemployed person, maintain a sense of competence and self-worth. It also includes financial support, such as severance pay and unemployment benefits, as well as agencies that offer counselling and job-hunting assistance. When such support exists, prolonged unemployment is more bearable.

Levels of unemployment vary not only in different countries but also throughout one country. Unemployment rates are also different in different age groups.

Every developed country has The Employment Service that provides nationwide employment services to job seekers and employers through employment centres. It operates employment programmes and services designed to assist the unemployed into work, including wage subsidy programmes.

Nowadays unemployment is a political and social problem which refuses to go away. In a number of countries the unemployment figures remain high and continue to be one of the major issues of the modern century.

To solve the problem there should be high government spending on unemployment and social security payments. For those without jobs the effects on health, family and prosperity are very serious.

Questions to discuss:

What factors often lead to unemployment?
What usually helps people to cope with unemployment?
What is the unemployment rate?
What is youth unemployment?
How do employment agencies assist job seekers?
How does unemployment affect people’s health, family and prosperity?
What can be done to solve the problem of unemployment?

Feedback

Activities:

You are the manager of a small company. Your company has been selling less of its products recently. You have decided that the only thing to do is to lay off one your staff. (there is no recognized way of doing this and you do not have make redundancy payments in your country.) Which one of these people will you sack?

Jill. Is an irregular time-keeper but when she is on form she is probably the best worker you have. She is 30.

Bill. Is the foreman. He does very little. The workers like him as a person. He is 50.

Henry. Is the shop steward and he keeps the workers quiet by promising action when they get angry, and then doing nothing. He is 45.

Jenny. Is not a good worker but she has been with the firm for twenty years. She has eight children. She is 47.

John. Is very lazy. He knows one or two things about your private life which you don’t want him to tell anyone. He is 24.

David. Is left wing. He is aggressive at union meetings. He has a following among the workers. He is a local councillor.

Six months after the sacking, you find that you still haven’t solved the problem of falling sales. Will you sack someone else? If not; what other possible courses of action are there?