In difficult times of economic and financial crises, the term "unemployment is stagnant." This concept does not inspire hope, but rather, on the contrary, it even more intensifies the situation. But knowledge of the interpretation of terms, the causes of this phenomenon, the features of its course and possible consequences reduces panic and makes it possible to objectively assess the situation.
The meaning of the concept
The term “unemployment” refers to a socio-economic phenomenon in which part of the country's able-bodied population is not involved in the production process. A situation in which absolutely all citizens of the state work is impossible even with forced employment, therefore there is a concept of a normal (natural) level. In addition, in their manifestation, different forms of unemployment are distinguished : open, hidden, fluid, stagnant. Each of them has its own characteristics, causes and consequences. Thus, unemployment is stagnant - this is just one form of manifestation of an economic phenomenon. All its nuances and subtleties we will consider below.
Who are the "unemployed"?
In order to correctly understand the essence of the whole phenomenon, it is worth figuring out who it is about. Unemployed are people who have reached working age, who do not have a disability or other good reason, so as not to be busy. This category of citizens also does not include those who are in retirement pensions, on parental leave, are the guardians of incapable persons requiring constant care, etc.
Stagnant unemployment characterizes that part of the population that has been unemployed for a long time on its own. This category includes:
- People working without formal employment (illegal).
- The population employed at home without official registration (artisans, freelancers, etc.).
- People who could not find work for a long time and, having lost hope, stopped all searches.
- Citizens whose education, profession, skills are not in demand on the labor market.
- “Doubtful elements” - thieves, homeless people, tramps, beggars, people with alcohol or drug addiction.
Causes of occurrence
In addition to the classic economic downturns, declining production and a general decline in living standards, the causes of stagnant unemployment can also be determined from the list of people this phenomenon covers. For instance:
- The increase in taxes and fees leads to the departure of a number of enterprises "in the shade", i.e. the people working there are moving from the category of officially employed to permanently unemployed.
- A sharp change in the economic system or the focus of production. A striking example of this can be the 90s: the professions and specialties of people who worked for a long time at the enterprises of the USSR in the newly created independent states turned out to be unclaimed.
- The low level of wages (labor costs) forces citizens to abandon full-time employment in favor of crafts or freelance.
- Extensive amnesties lead to an increase in the number of able-bodied people in the society who find it difficult to find a good job for a long time.
Negative sides
If measures are not taken to level the problem, then the level growth will continue, and stagnant unemployment will lead to a number of negative consequences. These include:
- The growth of social tension and the exacerbation of the criminal situation.
- Decrease in budget revenues.
- The increase in the cost of benefits for the unemployed.
- Underproduction of GDP, NVP.
- The growing gap between the social layers of the population.
Who is the answer?
Unemployment is stagnant - this is a problem for the entire country, respectively, and it should be solved by public authorities. To date, in addition to traditional payments and one-time financial assistance, several fairly effective ways to combat this phenomenon have been developed and implemented:
- State employment centers offer citizens whose professions, knowledge, skills are not in demand on the labor market, to take retraining courses and get the opportunity to find work in another specialty.
- Special rehabilitation centers help people overcome alcohol and drug addiction, as well as get an education and start working.
- In correctional institutions, convicts are trained in working specialties in order to simplify their adaptation to normal working life after release.
- A number of different measures for the official registration and state registration of entrepreneurial activity of those citizens who work at home.
These programs require considerable funds from the budget, but over time they will give a fairly good result.
Positive sides
Unemployment is stagnant - this is not only negative consequences. Like any socio-economic phenomenon, it has its advantages:
- Creating a reserve of labor.
- Stimulating government bodies to develop and implement various measures and programs that can offer a solution to several programs at once.
- Increasing social value and importance of labor among the population.
Thus, the socio-economic phenomenon called “stagnant unemployment” is not catastrophic or hopeless for the country, but requires government intervention and control.