Hamdard University Bangladesh

Assignment on:
Unemployment
Course: Macroeconomics
Course code: BBA222
Submitted to:
Sufian Ahammed
Head
Department of Economics, Hamdard university Bangladesh
Submitted by:
ROMAN MIAJI
Id:221221016

Date of Submission:
20/01/2024
20/01/2024
Sufian Ahammed
Head, Department of Economics
Hamdard university Bangladesh
Subject: Submission of Assignment.
Dear Sir,
I have completed the assignment on "Unemployment Definition,
Current Situation, Types, And Problems and Solutions ". With due
respect, I am submitting my assignment on the above-mentioned title
for the fulfilment of the requirement for the subject Taxation and
Auditing. I am requesting you to receive the assignment prepared by me
on the basis of my findings. I tried my level best to complete this
assignment properly and to produce meaningful research within all the
constraints.
All the supporters and guidelines, I received from you proved very
efficient to prepare the report.
I would like to gratitude you for giving me such a great opportunity to
prove my ability in making a quality assignment. If any mistakes remain,
I am heartily apologized for those. I hope you will take my mistakes with
due consideration.
Sincerely yours,
ROMAN MIAJI
ID: 221221016
22" Batch
 Acknowledgment
I would like to express my sincere gratitude to all those who have
contributed to the successful completion of this assignment on the
multifaceted topic of unemployment. This project has been an insightful
exploration into the various dimensions of unemployment,
encompassing definitions, types, current situations, problems, and
potential solutions.
Firstly, I extend my heartfelt thanks to my academic guide, Shahriar
Rifat for their invaluable guidance and support throughout the research
process. Their expertise and encouragement have been instrumental in
shaping the content of this assignment.
I would also like to acknowledge the vast pool of resources and
literature that has been pivotal in providing a comprehensive
understanding of the subject. The works of scholars and experts in the
field have served as beacons, guiding me through the intricate nuances
of unemployment.
Additionally, I am grateful to my peers and friends who have engaged in
insightful discussions and provided constructive feedback, enriching the
quality of the assignment. Their collaborative spirit has added depth to
the research and enhanced the overall learning experience.
Lastly, I express my appreciation to my family for their unwavering
support and understanding during the course of this assignment. Their
encouragement has been a source of motivation, enabling me to navigate
through the challenges and complexities inherent in studying
unemployment.
This assignment stands as a collective effort, and I am deeply thankful to
all those who have played a role, directly or indirectly, in its completion.
ROMAN MIAJI
221221016
 Table of content

1. What is unemployment?
2. Types of unemployment.
3. Current situation of unemployment.
4. Unemployment problems and solutions.
What is unemployment?

Unemployment refers to the state of being without a job or gainful

employment. It is a key economic indicator that measures the number or
percentage of people in the labor force who are willing and able to work
but are currently not employed. The unemployment rate is often used as
a gauge of the health of an economy.

Types of unemployment:
1.Structural Unemployment: This occurs when there is a mismatch
between the skills of the workforce and the requirements of
available jobs. Changes in technology or shifts in the economy
can contribute to structural unemployment.
2.Frictional Unemployment: This type of unemployment is
temporary and occurs when people are in between jobs, either
because they are searching for a new job or transitioning from one
job to another.
3.Cyclical Unemployment: This is associated with the business
cycle and occurs during economic downturns or recessions when
overall economic activity is low, leading to a decrease in demand
for goods and services and subsequently a reduction in the
demand for labor.
4.Seasonal Unemployment: Some jobs are seasonal in nature, and
workers may be unemployed during certain times of the year
when demand for those jobs is low.
Unemployment situation in Bangladesh:

Unemployment Rate in Bangladesh decreased to 4.70 percent in

2022 from 5.10 percent in 2021. Unemployment Rate in
Bangladesh averaged 3.99 percent from 1991 until 2022,
reaching an all-time high of 5.20 percent in 2020 and a record
low of 2.20 percent in 1991
Unemployment situation globally:

 World unemployment rate for 2022 was 5.77%, a 0.43%

decline from 2021.
 World unemployment rate for 2021 was 6.20%, a 0.7%
decline from 2020.
 World unemployment rate for 2020 was 6.90%, a 1.36%
increase from 2019.
 World unemployment rate for 2019 was 5.54%, a 0.16%
decline from 2018.
Unemployment problems

1. Economic Impact:
 Reduced Output: Unemployment leads to an underutilization
of human resources, resulting in lower overall economic
output.
 Decreased Consumer Spending: Unemployed individuals
have less disposable income, leading to reduced consumer
spending, which can further impact businesses and economic
growth.
2. Social Issues:
 Poverty: Unemployment often contributes to poverty as
individuals and families struggle to meet basic needs without
a steady income.
 Social Unrest: High levels of unemployment can lead to
social unrest, dissatisfaction, and an increased risk of crime.
3. Individual Consequences:
 Financial Strain: Unemployed individuals and their families
may experience financial difficulties, including the inability to
pay bills and meet basic needs.
 Mental Health Issues: Long-term unemployment can lead to
stress, anxiety, and depression due to the financial and
emotional strain.
4. Skill Erosion:
 Loss of Skills: Prolonged unemployment may result in the
erosion of skills and knowledge, making it harder for
individuals to re-enter the workforce when opportunities arise.
 5. Cyclical Challenges:
 Vicious Cycle: High unemployment can contribute to a
vicious cycle where reduced consumer spending leads to
further job losses, creating a negative feedback loop in the
economy.
6. Potential for Long-Term Damage:
 Scarring Effect: Prolonged periods of unemployment,
especially for young individuals entering the job market, can
have a scarring effect, impacting their future career prospects.
7. Government Expenditure:
 Increased Welfare Spending: Governments may need to
allocate more resources to unemployment benefits and social
assistance programs during periods of high unemployment,
leading to increased public spending.

How to solve unemployment problems:

1. Change in industrial technique:

Production techniques should suit the needs and means of the country. It
is essential that labor-intensive technology should be encouraged in
place of capital-intensive technology.
2. Policy regarding seasonal unemployment:
Seasonal unemployment is found in the 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.
3. Change in the education system:
The educational pattern should be completely changed. Students who
have a liking for higher studies should be admitted to colleges and
universities. Emphasis should be given to vocational education.
Qualified engineers should start their own small units.
4. Expansion of Employment exchanges:
More employment exchanges should be opened. Information regarding
employment opportunities should be given to people.
5. 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.
6. Full and more productive employment:
The main objective of the county’s employment policy should be to
increase employment opportunities and the productivity of labour. Govt.
should adopt a policy that provides employment to all people.
7. Increase in Production:
To increase employment, it is essential to increase production in the
agriculture and industrial sectors. Development of small and cottage
industries should be encouraged.
8. More importance to employment programmers:
In five year plans more importance should be given to employees. The
programmers like irrigation, roads, flood control, power, agriculture,
rural electrification can provide better employment to people.
9. High rate of capital formation:
The rate of capital formation in the country should be accelerated.
Capital formation should be particularly encouraged in such activities
which generate greater employment opportunities. The capital-output
ratio should be kept low.
10. Industries in the co-operative sector:
Industries in the cooperative sector should be encouraged. Kerala Govt.’
set up a textile mill covering 600 unemployed persons on a cooperative
basis. This is a novel approach to fight against unemployment. Different
State Govt. should take necessary steps in this direction.
11. Decentralization of industrial activity:
Decentralization of Industrial activity is necessary to reduce
unemployment. If industrial activities are centralized in one place, there
will be fewer employment opportunities in underdeveloped areas. So,
Govt. should adopt such policies which encourage the decentralization
of industrial activity.
12. Population control:
The growth of the population should be checked in order to solve the
unemployment, problem. Family planning programmes should be
implemented widely and effectively.

The End