How Global Labour Systems Contribute To The Unemployment Problem

Unemployment represents the number of people in the work force who want to work but do not have a job. It is generally stated as a percentage and calculated by dividing the number of people who are unemployed by the total work force.

The work force is made up of those people who want to work; it excludes people who are retired, disabled, and able to work but not currently looking for a position; for instance, they may be taking care of children or going to college. The US Bureau of Labor Statistics defines unemployed people as those who are jobless and have actively looked for work in the past four weeks.

Some known causes of unemployment globally include; frictional unemployment, where employees leave their job to find a better one, structural unemployment, that is when workers’ skills or income requirements no longer match the jobs available, then cyclical unemployment caused by the economy being in a recession, and the natural rate of unemployment caused by factors in labor markets, such as government regulations regarding hiring and starting businesses (Kimbarly Amadeo, 2018).

Unemployment is a global phenomenon which affects a number of places across the globe. Even the most developed countries in the world have to deal with this issue. Unemployment is a problem which affects not just individual people but the financial and economic condition of a whole country. It is for this reason that countries try their best to have proper economic policies so that at no point in time do they find themselves in a problematic situation. Once you find yourself in financial trouble getting yourself out of it is no easy task at all.

It is certainly not easy to explain what exactly unemployment is, but when trying to understand, it is important to keep in mind that the workforce of a country does not pertain to just any and everyone who wants to have a job. It pertains to those individuals who are not children or not retired. In addition to this, it does not include also, people who are physically or even mentally challenged.

There are many individuals who have a faulty understanding of what unemployment is and forget to eliminate those individuals who have been mentioned above. Of all the many causes of unemployment which exist, the main causes of unemployment can be pointed to the global economic crisis which exists at the moment and has existed for a while. This economic crisis has effected in a very negative manner, the trade between countries. Countries which were previously rather rich have not been able to withstand the economic crisis.

In order to avoid any kinds of major losses, companies too have to decrease the production of their goods, since not many individuals are willing to invest a lot of money in purchasing things.

The Case Of Uganda

Uganda just like any other member of the globe, it’s faced with a number of causes that may include the following obvious ones;

The large number of technological advancements; It is very needless to say that today we live in an age of technology. Previously companies required a lot of labor in order to perform tasks for them.

However nowadays, computers and various other machines can perform even the most complex of tasks in a matter of minutes. In addition to that, some years ago, even sending one message or reply took so much of time and a number of individual workers involved. Nowadays with the help of the internet, things are done in the matter of minutes and it is for this reason that so many people are no longer required to do tasks which required manual labor and intellectual ability.

Jobs have become increasingly specialized; Big companies provide their employees with a large number of benefits and facilities. It is for this reason that when looking for employees, they have a large number of specifications.

Unless a person fulfills all the requirements, he or she will not even be considered for the position at hand. Since job descriptions have become very specific and particular, people are finding it very tough to even get an interview.

At such a point in time there is little which can be done, because companies will not be willing to take onboard those who are not exactly perfect for the job.

Companies prefer hiring few people; Previously top companies hired a large number of people so as to ensure that all the jobs get done in a proper manner, within the stipulated deadline. However nowadays, companies prefer to hire as few people as possible.

This is so that they do not have to spend too much money on salaries and secondly so that their trade secrets do not go out easily. They are only willing to hire those people who they trust and are entirely sure of. Many bosses believe that hiring 5 competent people is better than having 20 average people. Offices only hire rock-star employees who are all-rounders and are capable of excellent work at all times.

People voluntarily choose to remain unemployed:There are many individuals out there who are very specific when it comes to choosing jobs, simply because they do not work in a company they would not like to mention on their CV, in the future. On the other end of the spectrum, there are those individuals who are willing to take up any job as long as they are getting a salary. The first kind of people prefer to wait for the right job to come along and that is why they end up being unemployed. They too want to be employed but they are unwilling to take up simply any and every job which happens to come their way.

A higher literacy rate among men and women: Till a few years ago, the literacy rate the world over was not very high. However nowadays more people from even the rural regions are coming forward to receive an education. In addition, even women are being encouraged to come forward and study so that their future is bright and promising. It is very sad indeed that because so many people are educated, the number of jobs are falling and that is why there is so much unemployment especially in towns. Once people are well educated, chances are that they will be unwilling to accept a job which is not worthy of their perceived intellect.

Immobility of the work force:

In certain places, job opportunities are more than others. Some places are just not developed enough to provide jobs to a large number of people. The immobility of the work or labor force is one major reason for unemployment as well.

For various reasons, certain able people are simply unwilling to migrate from one location to the next. Rather than taking the plunge, they prefer to remain close to home and families instead of moving to work from far. Doing this is something not very wise simply because if you realize that your current location does not hold much potential for you and your career, you must be willing to relocate.

Effects or Consequences of Unemployment:

It is rather interesting to note that the global economic crisis is not merely a cause but also an effect of unemployment. Once people are unemployed the government of a country becomes responsible for providing the people with amenities and facilities which they cannot afford.

So, when so many people of a country are unemployed it may automatically result in recession. Reduction in spending power of both the employed as well as unemployed; Once people are unemployed, they are naturally unable to have any purchasing power. However, besides the unemployed, even those who are employed are unwilling to spend a lot of money, simply because they fear that if things get worse and the company closes, they too might end up losing their jobs.

Depression; In addition to affecting the country and society it also negatively effects the individual who begins to second guess all his decisions as well as his personal worth at such a time.

Distress to families; When someone in the family is unemployed, it is usually not just that one person but the entire family which is affected and has to suffer. In addition to money being scarce in the family, the family also has to cater to the emotional needs of the person who is unemployed.

Increase in crime; Of all the negative effects of unemployment, one of the worst effects is that it leads to an increase in crime in the country. When bread winners in a family are unable to provide for their loved ones, they have no option but to resort to crime as well as foul means in order to feed their family members. At such a time when people are unable to keep body and soul together, their conscience seizes to function and they do what seems correct to them at the moment as well as under the given circumstances. It is often said that desperate times call for desperate measures and that is the motto which such people choose to live by.

What Can Be Done?

However, the following solution can be sought to deal with Unemployment in Uganda and elsewhere:

Creation of more job opportunities; The work force of any country usually makes up a large part of its population. In order to cater to the needs of its people, all countries should ensure that they create many job opportunities so that all the people who are eager to work, get the chance to do so.

This having been said, the government should ensure that people are paid adequately for the services which they provide so that at the end of the day, no person feels like he or she is being overworked and paid less. Once more job opportunities are created the unemployment rate is sure to come down a great deal.

Enter diverse fields; Many of us would know that from a very young age, we are made to choose from very specific job options. Most often than not, our parents encourage us from a very tender age to become either doctors or lawyers or are encouraged to dream big. It is for this very reason that from a very young age, kids should be encouraged to broaden their horizons. Not everyone needs to be a doctor, lawyer or a part of the corporate jungle.

There are plenty of lucrative opportunities available for individuals in other fields as well. It is rather unfortunate that so many able people are unable to find jobs, simply because there are not many opportunities available for them. Big and successful companies nowadays simply want to hire the best of the best. No big corporate house is willing to hire individuals who are unsure of what to do in a professional set up. Being unemployed causes people to often feel sad as well as depressed, so if you have some family member or friend who is unemployed ensure that you are there for this person in their time of need and self-doubt as well.

Skilling the citizens; Uganda as a country in an attempt to mitigate unemployment especially among the youths where it is implementing a program code-named skilling Uganda, this is a well thought out program that can ensure that graduates acquire skills that they might be lacking to fit in the current job market, however not all stakeholders seem keen to support this initiative.

Change in industrial technique; Production techniques should suit the needs and means of the country. It is essential that labour intensive technology should be encouraged in place of capital intensive technology.

Managing seasonal unemployment; Seasonal unemployment is found in agriculture sector and agro based industries. To remove it, Agriculture should have multiple cropping, Plantations, horticulture, dairying and animal husbandry should be encouraged, Cottage industries should be encouraged.

Change in education system; Educational patterns should be completely changed. Students who have a liking for higher studies should be admitted in colleges and universities. Emphasis should be given on vocational education. Qualified engineers should start their own small units.

Expansion of Employment exchanges; More employment exchanges should be opened. Information regarding employment opportunities should be given to people. More assistance to self employed people; Most people in India are self-employed. They are engaged in agriculture, trade, cottage and small scale industries etc. These persons should be helped financially, providing raw materials and technical training can make a big difference.

Full and more productive employment; The main objective of any country’s employment policy should be to increase employment opportunities and productivity of labour. Governments should adopt a policy that provides employment to all people. Increase in Production; To increase employment opportunities, it is essential to increase production in agriculture and industrial sectors. Development of small and cottage industries should be encouraged.

More importance to employment programmes; In five year plans more importance should be given to employment. The programmes like irrigation, roads, flood control, power, agriculture, rural electrification can provide better employment to people. High rate of capital formation; Rate of capital formation in the country should be accelerated. Capital formation should be particularly encouraged in such activities which generate greater employment opportunities. Capital output ratio should be kept low.

Industries in co-operative sector; Industries in co-operative sector should be encouraged. Governments should set up a textile mill covering 600 unemployed persons on co-operative basis. This is a novel approach to fight unemployment. Different governments should take necessary steps in this direction.

Decentralisation of industrial activity; Decentralisation of Industrial activity is necessary to reduce unemployment. If industrial activities are centralised at one place, there will be less employment opportunities in the underdeveloped areas. So, governments should adopt such policies which encourage decentralisation of industrial activity. Population control; The growth of population should be checked in order to solve unemployment, problem. Family planning programme should be implemented widely and effectively.