Question

Why Should We Be Worried About Underemployment?

Answer 1

We should worry about underemployment, as it ultimately leads to poverty. If a person has no job, he/she cannot be able to fulfill their basic needs, and results in a poor standard of living.

The following are some causes of underemployment

• Underemployment can result from a recession and the cyclical unemployment that follows.
• Technological progress has also resulted in underemployment.
• Trends change frequently, and not every employee can keep up with them all of the time.
• Underemployment is sometimes caused by resistance to change.

Impact of Unemployment

Unemployment in any nation has the following effects on the economy:

• The problem of unemployment gives rise to the problem of poverty.
• The government suffers an extra borrowing burden because unemployment causes a decrease in the production and less consumption of goods and services by the people.
• Unemployed persons can easily be enticed by antisocial elements. This makes them lose faith in the democratic values of the country.
• People unemployed for a long time may indulge in illegal and wrong activities for earning money, which increases crime in the country.

Refer more

• What is meant by seasonal unemployment?
• What do you understand by disguised unemployment? Explain with an example each from the urban and rural areas.
• Explain different types of unemployment found in India