The Social Impact of Unemployment

This assignment delves into the multifaceted impact of unemployment on society. It examines the psychological effects on individuals, the strain on families and communities, and the broader economic consequences for nations. Students are tasked with analyzing various research studies and reports to understand the complexities of unemployment and its implications.

SOCIOLOGY

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................1
1.1 Discussing common sense perspective on unemployment ..................................................1
1.2 Applying sociological perspective to explain existence of the situation..............................2
1.3 Social policies and measures adopted for unemployment in London...................................3
1.4 Implications for professional practice...................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Unemployment is a major issue which has caused a significant impact on country's
growth and development within the economy. It has created an indefinite impact on demand and
supply gap for the organisations and people seeking employment (Feather, 2012). The stated
social problem has both personal and social cost within the economy which includes financial
hardship, poverty, homelessness, housing stress, family tension etc. The impact of the same is
effectively observed on country's growth and development issues within the economy. The
present study will evaluate the common and sociological perspective on the stated factor. The
study will also discuss the social policy and implication of professional practices on the stated
topic. The extensive research on the stated topic will help in attain a clear picture of facts and
figures related to unemployment in London.
1.1 Discussing common sense perspective on unemployment
Unemployment is a universally analysed social issue which has created an insignificant
impact on the growth and development of the countries. Unemployment rate in the economy
represents a considerable imbalance in social and economic development of the nation (Puig-
Barrachina and et.al., 2011). Unemployment is termed as a social issue because it has created a
significant impact on different problems regarding poverty, debts, housing stress, family tensions
etc. The implication of the same is observed on the growth and development of the residents of
the nation. International labour organisation as defined unemployment as a percentage rate of
people seeking job, without jobs or are switching jobs (Pfleger, Flachs and Koch-Henriksen,
2010).
Researches revealed that rate of unemployment has a significant impact on the economic
conditions of the countries. Becker, (2014) stated that cost of unemployment to an individual is
difficult to analyse. It has created an insignificant social impact on economies of the country.
The employment rate of UK is moderate however during economic downturn the rate of
unemployment significantly raised which created a noticeable imbalance within the country. The
economic problems faced during high rate of unemployment were poor economic performance,
lack of experience and training among young people, rising youth population, poor employment
protection legislations and mismatch between the demand and supply of skills of young workers
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(Coile and Levine, 2011). Tanveer Choudhry, Marelli and Signorelli, (2012) evaluated that
unemployment it the social issue which cannot be erased totally from the society as a whole.
The recent reports of economic recession has mentioned a well evaluated evaluation of
social impact of unemployment on societies. The social tension and regarding deprivation,
homelessness and mental health issues was effectively analysed in the economy this created a
significant impact on social growth aspects in the market. Pelzer, Schaffrath and Vernaleken,
(2014) analysed that the cause and effect of unemployment has the ability to cause a long term
scar on the society and residents of the nation as well. Unemployment affect purchasing power,
crime rates and health inequalities in the society as well. These are the interrelated aspects which
are considered as the common perspective of unemployment within the country (Zivin,
Paczkowski and Galea, 2011). Moreover, it has also been evaluated that youth unemployment is
creating the worst impact on the country's development because it disturbs the growth and
development rate of the nation. Moreover, the social pressure and lack of proper employment
misguides the youth towards drugs, crime and other illegal activities which are creating a major
social issue in the countries presently.
Immigration is another crucial social aspect which is creating social tensions in
developed countries. Researches revealed that the impact of immigration on labour market is
wide and effective (Blasco and Rosholm, 2011). UK has observed low impact of immigration on
the labour market due to some strict regulatory restrictions on the economy. However, the impact
of declining wage rates are the issues that the economy has observed to create a significant
impact on social development and growth in the economy. Hence, the overall perception for
unemployment has revealed a commonly accepted perception in the society which reveals that
unemployment as a negative outcome for the economic growth and development of the nation.
1.2 Applying sociological perspective to explain existence of the situation
Unemployment is a major social issue of the societies in the present world economies.
The sociological perspective of the issue has created a significant impact on society and
individual perception for the countries (Clark, Knabe and Rätzel, 2010). The level of
unemployment can be significant treated in the economies however this has created wide
sociological impact on the people. Unemployment is a major life event. It has a devastating
impact on the lives associated with the person unemployed. The family members, person
unemployed and community all are significantly affected by the event mentioned in the report
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(Prenzel and Vanclay, 2014). The impact of the same is also long lasting. The economic report
has revealed that the loss of employment in the rural sector results in forcing the family to cult
down the expenditure which results in poverty, hunger and even homelessness. In order to deal
with the stated issue people migrate to urban or industrial areas to seek effective jobs and attain
sustainable income to survive. The financial and budgetary impact of employment has a lower
impact as compared to that of sociological impact (Calvillo–King and et.al., 2013). Countries are
regularly developing to create a well defined and significant impact on global competition in the
economy. However, the impact of social growth ad development also plays a significant role in
analysing the national growth in the economy.
Knabe and Rätzel, (2011) stated that social cost of unemployment is difficult to calculate
for the country, individual or family as well. However, the implication of the same can be
effectively analysed and measured by the society. Countries often take well defined and effective
actions to rescue the adverse impact of unemployment. Rigid policy development and restrictive
immigration policies are commonly adopted by the countries as a whole. Protectionism can not
only lead to destructive tit-for-tat retaliation among countries, but reductions in trade harm the
economic well-being of all trading partners (SOCIAL IMPLICATIONS OF UNEMPLOYMENT,
2015). The social cost regarding interaction level of people within the society is another
significant impact which has effected the work culture and profiles in the market. In has created
an indefinite growth impact on business unit and society as well. Elevated crime rate is
considered to be a common outcome of high rate of unemployment within the country
(Unemployment - Policies to Reduce Unemployment, 2015). It has been analysed that
unemployment in youth has effectively increased the rate of crimes in different nations which is
considered to be an unacceptable social outcome of the country as a whole.
1.3 Social policies and measures adopted for unemployment in London
UK economy has adopted different measures and strategies to deal with the problems
related to unemployment in the country. The government has analysed that unemployment has
restricted the development of the nation and country as a whole in a significant manner this has
developed a well defined impact on social development and growth in the country (The Cost Of
Unemployment To The Economy, 2011). In addition to these policies and procedures has helped
the nation in regulating the negative implications. Countries with stronger systems of protection
for the unemployed have lower rates of mental health problems among the unemployed than
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countries such as the United States. These are the significant implications of policies and
measures which companies adopt to control the same in the society (Unemployment ratios by
borough, 2015). UK government has implemented well designed means of policies to reduce the
rate of unemployment in the nation. The major restriction of visa for immigrants was a protective
step for the nation to influence national employment and minimise migration in the country. This
helped the country in boosting high rate of local employment for the national growth and
development. This has influenced the nation in developing well developed impact on social and
economic development of the country. In addition to this rate of education and crime has also
been regulated in the nation. The policies of the nation focuses on stabilizing the level of
inequalities sustaining within the country and people as well. The social support policies focuses
on stabilizing demand and supply gap in the economy which creates an indefinite impact on
country's development aspects. Reducing occupational immobility is another significant measure
that the country has adopted in order to attain high growth and success measures within the
market. The country has developed effective schemes and support policies to help the nation in
attaining high growth and development measures in the economy. Policies such as
apprenticeship schemes aim to provide the unemployed with the new skills they need to find
fresh employment and to improve the incentives to find work. Policies regarding work place
timings are also well defined measures undertaken by the country which has helped the
economic and social development of the country. In a report published in 2011, a trade union
reported that 11% of British adults do not have any qualifications. In some areas such as parts of
Glasgow and Birmingham, more than a third of people of working age have no qualifications ().
Providing tax benefits to the migrants is another significant aspect adopted by the
companies which has created a well defined impact on the residents and people surviving in the
nation. Proving lower marginal tax rate to the employees of earning below of equal to basic
earning levels has helped the society in developing a significant growth aspect in the nation. This
has helped the country in creating significant purchasing power for the employees working at
different organisational levels.
1.4 Implications for professional practice
The implication of unemployment on professional practices is high and significant for the
country. It has helped the business units in analysing a significant gap between the demand and
supply of skilled and qualified employees for different roles and responsibilities. Higher rate of
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unemployment is observed within the unskilled or employees with low industry experience.
Reteaches have analysed than countries in the present era of competition prefer the employees
with high rate of experience or qualification. This has widened the demand and supply gap in the
economy. Moreover, low opportunities for employment in the market has resulted in higher rate
of social issues and tensions. Thus, the policies such as government subsidies, tax redemption
and apprenticeship has helped in developing employees with lower qualifications of
employments opportunities within the market. This has helped the nation in creating a positive
impact on employee development and growth implications within the economy. The country has
balanced the demand and supply gap along with it the impact of social tensions has also been
minimised within the country. New jobs has been crated within the economy to develop national
development aspects for the residents. Encourage entrepreneurship and innovation as a way of
creating new products and market demand which will generate new employment opportunities.
The impact of economic recovery and development within the nation has helped the residents in
contributing towards economic growth and development of the nation. Moreover, this has also
developed the economic development aspects for different growth measures for the business
unit.
CONCLUSION
Unemployment is a universally analysed social issue which has created an insignificant
impact on the growth and development of the countries. Unemployment rate in the economy
represents a considerable imbalance in social and economic development of the nation. Policies
and procedures has helped the nation in regulating the negative implications. Countries with
stronger systems of protection for the unemployed have lower rates of mental health problems.
Different countries has adopted different measures to deal with the sated social issue. UK has
created a well defined measure to deal with problem of unemployment within the country.
Measures regarding tax reforms, subsidies and apprenticeship has helped the country in creating
a significant development measures for the employees and residents of the nation.
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REFERENCES
Becker, H., 2014. Social impact assessment: method and experience in Europe, North America
and the developing world. Routledge.
Blasco, S. and Rosholm, M., 2011. The impact of active labour market policy on post-
unemployment outcomes: evidence from a social experiment in Denmark.
Calvillo–King, L. and et.al., 2013. Impact of social factors on risk of readmission or mortality in
pneumonia and heart failure: systematic review. Journal of general internal medicine,
28(2), pp.269-282.
Clark, A., Knabe, A. and Rätzel, S., 2010. Boon or bane? Others' unemployment, well-being and
job insecurity. Labour Economics, 17(1), pp.52-61.
Coile, C.C. and Levine, P.B., 2011. Recessions, retirement, and social security. The American
Economic Review, 101(3), pp.23-28.
Feather, N.T., 2012. The psychological impact of unemployment. Springer Science & Business
Media.
Knabe, A. and Rätzel, S., 2011. Scarring or Scaring? The psychological impact of past
unemployment and future unemployment risk. Economica, 78(310), pp.283-293.
Pelzer, B., Schaffrath, S. and Vernaleken, I., 2014. Coping with unemployment: The impact of
unemployment on mental health, personality, and social interaction skills. Work, 48(2),
pp.289-295.
Pfleger, C.C.H., Flachs, E.M. and Koch-Henriksen, N., 2010. Social consequences of multiple
sclerosis (1): early pension and temporary unemployment—a historical prospective
cohort study. Multiple sclerosis, 16(1), pp.121-126.
Prenzel, P.V. and Vanclay, F., 2014. How social impact assessment can contribute to conflict
management. Environmental Impact Assessment Review, 45, pp.30-37.
Puig-Barrachina, V. and et.al., 2011. Monitoring social determinants of health inequalities: the
impact of unemployment among vulnerable groups. International Journal of Health
Services, 41(3), pp.459-482.
Tanveer Choudhry, M., Marelli, E. and Signorelli, M., 2012. Youth unemployment rate and
impact of financial crises. International journal of manpower, 33(1), pp.76-95.
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Zivin, K., Paczkowski, M. and Galea, S., 2011. Economic downturns and population mental
health: research findings, gaps, challenges and priorities. Psychological medicine,
41(07), pp.1343-1348.
Online
SOCIAL IMPLICATIONS OF UNEMPLOYMENT. 2015 [Online] Accessed through
<http://www.management.ase.ro/reveconomia/2014-2/14.pdf> [Accessed on 14th July,
2016].
The Cost Of Unemployment To The Economy. 2011 [Online] Accessed through
<http://www.investopedia.com/financial-edge/0811/the-cost-of-unemployment-to-the-
economy.aspx> [Accessed on 14th July, 2016]
Unemployment - Policies to Reduce Unemployment. 2015 [Online] Accessed
through <http://www.tutor2u.net/economics/reference/unemployment-
policies-to-reduce-unemployment> [Accessed on 14th July, 2016]
Unemployment ratios by borough. 2015 [Online] Accessed through
<http://www.londonspovertyprofile.org.uk/indicators/topics/work-and-worklessness/
unemployment-by-borough/> [Accessed on 14th July, 2016]
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