Poverty and Unemployment - Research Paper Example

Poverty and Unemployment Before going into the discussion regarding unemployment and poverty, which are two of the most significant and challenging issues being faced by almost every country of the current world, let us first get to know what these issue actually are. Unemployment refers to the inability of talented and skillful people to find a suitable job. Kayne (2010) asserts, “The degree of unemployment in a nation is one indicator of the economic health of the country”. If the degree of unemployment in a country is high, the chances of economic crisis increase whereas if there is low degree of unemployment in a country, the chances of economy crash become very less. Barling and Cooper (2008) assert, “Unemployment varies over time and across geographic locations, and across occupational sectors” (p. 217). The issue of unemployment acts as a foundation for many other critical issues, which include poverty, crimes, depression, inflation, and economic instability. Poverty, in a general context, refers to the lack of resources that are essential to carry out daily activities of life. Some countries set a standard line of income in order to calculate the level of poverty. Ellis-Christensen (2010) asserts, “People who live below these lines or just above them might be considered impoverished, while those who live well above the line are clearly not”. Poverty and unemployment in any part of a country leave a negative impact on the overall economy of the country. Let us discuss the issues of poverty and unemployment in some detail in order to get a better understanding of impact of these issues on the economy of a country. Unemployment Issue Employment plays a major role in maintaining the financial stability of a country. The economy graph of a country goes down when the people living in that country do not find any employment opportunities available to them. Although governments of all countries are taking considerable measures to provide the people with job opportunities, yet the rate of unemployment is increasing day by day. Even in the United States of America, many states are facing the problem of increased rate of unemployment. The US Bureau of Statistics indicate that approximately 9.6 % of the total US labor force is not seasonally adjusted anywhere. Various factors play their part in increasing the rate of unemployment in any specific part of the world. Some of the most influencing factors include downsizing, illegal immigration, outsourcing business processes to foreign companies, implementation of automated technologies, and mergers. Mismatch between the skills of the unemployed workers and the jobs responsibilities is another reason of increased rate of unemployment in a country (Bell, 2000, p. 51). Outsourcing and its Effects on People Outsourcing is a process in which a business process is transferred to a company, which is generally located in another country. For example, if a manufacturing company, named ABC Ltd., hires the services of some other company for any specific purpose such as assembling parts of a product or for some other manufacturing processes, it means that ABC Ltd. has outsourced a business process to a foreign company. Outsourcing a business process is beneficial for high skilled workers in the form of increased wages but it brings a negative impact on low skilled workers as their wage rates become very low. Outsourcing a business process not only results in widening the wage gap between fresh and experienced workers but also decreases the level of employment in the home country. Intervention Method In case outsourcing is necessary, the business processes should be handed over to such companies, which belong to the same country. It will not only result in decreasing the rate of unemployment in the home country of the company but also it will produce beneficial results for the economy of the country. Downsizing and its Effects on People Downsizing is another factor, which gives rise to the rate of unemployment in a country. Downsizing means cutting down the total number of employees in order to survive in a hostile environment. Companies need to do downsizing when the market is not stable and the economic position of the country does not seem to be good. Downsizing brings very negative effects on the employment rate of a country. People lose their jobs and they find it very hard to find a suitable job again in some other company. Smith (2010) asserts, “For employees, downsizing can be very unnerving and upsetting”. Sandifer and stein (1985) found that symptoms of depression and anxiety appear in the moods of unemployed people”. “Unemployed individuals have to go through a tight economic crunch” (Oak, n.d.). Downsizing helps the companies maintain their position in a competitive market but results in destabilizing the financial position of those employees who were once a part of the company. Intervention Method In case downsizing is necessary for a company, the management of the company must arrange the jobs for their employees in a similar capacity before giving them the notice to leave the jobs. “The most important factor in achieving low unemployment levels is the rate of job creation over and above population growth” (Symes, 1995, p. 179). It is also the responsibility of the government of any specific country to create job opportunities for the affected employees. Illegal Immigration and its Effects on People Another reason of increased rate of unemployment in the European and American countries is illegal immigration. Illegal immigration is one of the most critical issues being faced by most of the developed countries. Even in the United States of America, illegal immigration is one of most controversial issues. There are many illegal immigrants present in different states of America. California, in particular, holds a large number of illegal immigrants that count up to 2,450,000 approximate figures. “56% of illegal immigrants in the U.S. come primarily from Mexico in order to supply laborers to thousands of U.S. employers” (Garibaldi, 2006). Many illegal immigrants are present in America and they do not hesitate to do any kind of job even at low wage rates. “In most U.S. contexts, illegal immigration refers to the presence of 12 million undocumented Mexican-American immigrants in the United States” (Head, 2010). Undocumented immigrants create a big problem for the government of any country in terms of increasing the rate of unemployment in the country. It is because illegal immigrants take place of the local skilled workers particularly in the manufacturing sector. Companies try to save their money by hiring low-waged workers because those companies get the required work from them in a regular manner but do not pay them much in terms of salary. Intervention Method Illegal immigration can be reduced through many ways. Some of these ways include closing the loopholes that facilitate illegal immigration, strictly enforcing the immigration laws, and reducing the incentives for the illegal immigrants. Automated Technologies and its Effects on People Smith (2010) found that automated technologies also result in increasing the rate of unemployment in the country. Technology, along with many benefits, also creates some problems for the skilled people living in any specific country. It is because when a technology is brought into use, it automates many business processes, which are usually carried out humans. Intervention Method The government of a country should be able to catch foreign investment in the country in order develop the industrial sector. Technological advancements are mandatory for any company to survive. Therefore, the only way to decrease the unemployment rate is to develop the industrial sector because it results in creating job opportunities for the unemployed people. Poverty Issue Unemployment gives rise to another critical issue, which is poverty. Poverty refers to lack of essential elements of life such as food and water. Lander (2010) asserts, “Approximately twenty thousand children around the world die each day because of poverty”. Bell (1995) found that eligibility of a person to obtain public housing, government loans, and low-cost health insurance usually refers to the poverty level. Poverty rates still are very high despite of a large amount of economic funding that has been invested to reduce the world poverty crisis (Timothy, 2009). Income and consumption are the two basic factors that lead an individual’s way towards either poverty or surplus. Ringen (1988) asserts, “Poverty can be defined and measured either directly (in terms of consumption) or indirectly (in terms of income)”. If the level of income of a person exceeds the level of consumption, the person is said to be rich whereas if the level of consumption exceeds a person’s level of income, then the person is said to be living in poverty. There are many causes of poverty, which include unemployment, warfare and natural disasters, social inequality, overpopulation, and lack of adequate education. Effect of Warfare on People Warfare plays a major role in increasing the level of poverty in the countries between which the war takes place. Warfare results in shortage of food, shelter, and necessities of life. Wars destroy the infrastructure of the countries resulting in weakening the economy of the countries. Intervention Method Poverty caused due to warfare can only be reduced through rebuilding the infrastructure of the country as soon as possible in order to provide the affected people with shelters and employments. An estimate of total destruction should be taken through surveys and the governments should take appropriate steps for rehabilitation of affected people. Effect of Social Inequality on People Social inequality is one of the most significant sources of poverty. Discrimination based on race, sex, and culture gives birth to poverty. In almost every country, some classes of people are deprived of their basic needs just due to their race and culture. This discrimination makes them poor and they are compelled to live a miserable life. Intervention Method Social inequality can only be eradicated from a society if the judiciary and the government of a country take all decisions based on facts instead of race, sex, or religion. All jobs should be given on merit regardless of skin color or gender of the candidates. Effect of Lack of Adequate Education on People Lack of adequate education is another factor, which gives rise to the level of poverty in a country. In poor countries, lack of education is very common, particularly in rural areas. It is because the government of an under-developed country cannot afford to provide high standard education to the people living in different parts of the country in a uniform manner. People cannot find a good source of income without education, which results in increasing the level of poverty in the country. Intervention Method It is one of the core responsibilities of the government of any country to provide its people with standard education. The government should take steps to provide low cost but high standard education to all parts of the country. Case Management for Unemployment and Poverty “Individual case management lies at the heart of preventive strategies to reduce unemployment” (Poetzsch, 2007). This task can only be achieved by implementing appropriate intervention methods and by determining the needs of each skilled worker. Unemployment is a major force behind increased level of poverty. The governments of all countries should focus on resources instead of deficiencies and should make use of innovative approach to work as an instrument of employment promotion. Conclusion Summing it up, unemployment and poverty are two of the most critical and challenging issues that are being faced by almost every country of the world. Unemployment refers to the inability of a person to find a suitable job. The lack of job opportunities results in increasing the rate of unemployment in any specific country. The issue of unemployment acts as a base for many other serious issues, which include poverty, depression, and economic instability. Poverty refers to the lack of resources that are essential to carry out daily activities of life. Poverty and unemployment in a country leave a negative impact on the image and economy of the country. It should be one of the major responsibilities of the government of any country to take appropriate steps in order to reduce the levels of unemployment and poverty in the country. References Barling, J., & Cooper, C. (2008). The SAGE Handbook of Organizational Behavior. London: SAGE Publications Ltd. Bell, C. (1995). What is Poverty?. Retrieved from http://findarticles.com/p/articles/mi_m0254/is_n2_v54/ai_16864511/ Bell, S. (2000). The Unemployment Causes in Australia: Which Way Out?. Cambridge: Cambridge University Press. Ellis-Christensen, T. (2010). What is Poverty?. Retrieved from http://www.wisegeek.com/what-is-poverty.htm Head, T. (n.d.). What is Illegal Immigration?. Retrieved from http://civilliberty.about.com/od/immigrantsrights/f/what_is_illegal.htm Kyane, R. (2010). What is Unemployment?. Retrieved from http://www.wisegeek.com/what-is-unemployment.htm Landes, N. (2010). Poverty, A Denial of Human Rights. Retrieved from http://ezinearticles.com/?Poverty,-A-Denial-of-Human-Rights&id=4056869 Oak, M. (n.d.). Unemployment Causes and Consequences. Retrieved from http://www.buzzle.com/articles/unemployment-causes-and-consequences.html Poetzsch, J. (2007). Case Management: The Magic Bullet for Labour Integration?. Retrieved from www.issa.int/content/download/40623/790047/version/13/.../TR-06-2.pdf Ringen, S. (1988). Direct and Indirect Measures of Poverty. Journal of Social Policy, 17(3), 351-365. Sandifer, R., & Stein, S. (1985). Effects of unemployment on mental and physical health. Am J Public Health, 75(5), 502-506. Smith, D. (2010). I See Different Types of Unemployment. Retrieved from http://ezinearticles.com/?I-See-Different-Types-of-Unemployment&id=4965528 Smith, S. (2010). What is Downsizing?. Retrieved from http://www.wisegeek.com/what-is-downsizing.htm Symes, V. (1995). Unemployment in Europe: Problems and Policies. New York, NY: Routledge. Timothy, L. (2009). Global Poverty Solutions Based on Entrepreneurship and Innovation. Retrieved from http://ezinearticles.com/?Global-Poverty-Solutions-Based-on-Entrepreneurship-and-Innovation&id=3005769 Read More