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How will you explain the term unemployment? - Economics
How will you explain the term unemployment?
Unemployment is a situation where people who are willing to work at the prevailing wage rates cannot find jobs.
Key points to explain the term:
Working Age Group: Unemployment only applies to the population in the age group of 15 to 59 years. Children and the elderly are not considered unemployed.
Willingness to Work: It only refers to those who are actively looking for work. A person who is not interested in working is not considered unemployed.
Wastage of Resources: It represents a wastage of manpower resources and turns a potential asset (people) into a liability for the economy.
Economic Overload: It increases the dependency of the unemployed on the working population, which negatively affects the overall quality of life and the economy.