Unemployment or joblessness is defined as a situation where someone of working age is not able to get a job but would like to be in full time employment. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. The level of unemployment varies with economic conditions and other circumstances.
An unemployed person can not earn his living. He has to depend on others . He is thought as a burden to the family or the society. So, it is regarded as a problem.
Unemployment is common every where in the world. No country in the world is completely is free form it. So, Egypt is not exception from it. Rather, this problem is very serious in this country. Many people are badly suffering from the curse of unemployment.
The Effects of Unemployment
An un-employment always hits individuals the hardest. The jobless looses their self respect, purpose, sense of achievement and, of course an income. It's not the individuals themselves, their families also suffer with them. Unemployment is the mother of countless ills. It is such a poison that pollutes the society, endangers the democratic fabric of the country. We can't expect nobility, honesty and truth from a person who is unable to manage two square meals a day for his family. An unemployed person has no sense of self-respect as he has no sense of security.
The effects of the un-employment in a society like a developing country in Egypt
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1. Financial and Economical loss: Due to they do not have any job, so it's a financial losses the unemployed workers. And Individual looses his/her productivities and a bad effect of national gross domestic productivity. National economy suffers because of lower output.
2. Mental health: Mental health problems like: Law self-confidence, feeling unworthy, depression and hopelessness. With the lost income and the frustration involved in it, the recently unemployed may develop negative attitudes toward common things in life and may feel that all sense of purpose is lost. Frequent emotions could be - low self-esteem, inadequateness and feeling dejected and hopeless.
3. Health diseases: The unemployment overall tension can increase dramatically general health issues of individuals.
4. Tension at home: Quarrels and arguments at home front which may lead to tension and increased numbers of divorces etc.
5. Political issues: Loss of trust in administration and the government which may lead to political instability, even political instability, Arab springs in Arab countries are the great examples recently.
6. ï‚· Tension over taxes rise: Unemployment also brings up discontent and frustration amongst the tax paying citizens. In order to meet the demands of the unemployment fund the government may have to increase the taxes thus giving way to restlessness amongst the tax paying citizens.
7ï‚· Insecurity amongst employees: The prevailing unemployment and the plight of the unemployed people and their families may create fear and insecurity even in the currently employed people.
8ï‚· Crime and violence: Increase in the rate of crime. And they are desperate to do an unethical things and activities.
9ï‚· Suicide cases: Increase in the rate of suicide attempts and actual suicides as well.
10ï‚· Social outing: Unemployment may bring a decrease in social outings and interactions with other people, including friends.
11ï‚· Stigma: Unemployment brings with more than just 'no work'. It also brings with it the disgrace that the person has to bear. Nobody likes to be termed as unemployed.
12ï‚· Standard of leaving: In times of unemployment the competition for jobs and the negotiation power of the individual decreases and thus also the living standard of people with the salaries packages and income reduced.
13ï‚· Employment gaps: To further complicate the situation the longer the individual is out of job the more difficult it becomes to find one. Employers find employment gasps as a negative aspect. No one wants to hire a person who has been out of work for some time even when there's no fault of the individual per say.
14ï‚· Lose of skills' usage: The unemployed is not able to put his/her skills to use. And in a situation where it goes on for too long the person may have to lose some of his/her skills. The spending power of an unemployed person and his/her family decreases drastically and they would rather save than spend their money, which in turn affects the economy adversely.
So, unemployment is very much an economic problem, as well as personal, social, national problem. Unemployment is a weight on society that should be fixed.
The Causes of Unemployment in Egypt
A lot of uneducated people in Egypt who can't effort themselves to avail expected jobs, This country is over populated. The rate of population growth is very high. So the present job facilities can not keep pace with the growing population. Besides, country is not developed in industries. They can absorb only a limited number of people. People run to major cities for an employment.
One of major cause of unemployment is a falling economy, recession all over the world
Political unrest, Government instability, social security, that's why some sectors are facing tremendous problem like, tourists visits, foreign investment etc
Government policy, the government has not a comprehensive strategy for job creation policy, poor governance, mismanagement of resources etc. Effect of Economic policies, the country weak and unrealistic economic policy is a direct cause of high unemployment , open market investment policies, tax rates policy etc
Lack of proper education and training, there is a mismatch of the skills provided by the Egyptian educational system and the skills needed in the job market.
Imbalance between peoples qualifications and the demands of the labor market
The current educational system leaves workers unprepared for the demands of the labor market
Still technical education does not get priority in the country, so people usually fails to get good jobs. There are also some other reasons like social prejudices which pull them to join in some particular jobs.
The private sector does not provide enough job opportunities, which contributes to the continual increase of the informal sector, as individuals resort it to provide a source of income
The lack of skilled labors are blamed on, among other things, the cultural bias against manual works, the theoretical nature of courses in most higher education institutions ( world Bank Report )
And for Egyptian woman, marriage a cause for unemployment - a report by the World Bank said that women face many obstacles in entering the labor market in Egypt, and that life after marriage is one of the obstacles that raises unemployment rates among women compared to their Egyptian male counter parts.
What is the unemployment rate in Egypt ?
The Egyptian unemployment rate rose substantially after Arab Spring and is now holding stable at 12.6%.
The unemployment problem has become a great concern all over the world, not only in Egypt. Unemployment means the state of being without any work, both for educated and uneducated persons, for earning one's livelihood. At present the hard task for any young man is to manage a job. It is boring and sometimes humiliating. A person has to run year after year from office to office to find out a job. Hundreds of candidates swarm over a single post. The bad effect of unemployment is not only confined to the economic field but also destroys the sense of moral values for want to employment. Many young people become frustrated. Life becomes a curse and burden to them. When there is no hope, they resort to commit different types of crimes.
Solution of Unemployment problem
The most essential measure is industrialization. A large number of mills, factories and industries should be set up where many of our youths will get the opportunity to work, and full support from Government to its enterprenuers.
Industrialization on a large scale and establishment of more mills and factories may give opportunities to many people for getting works and jobs.
A great change should be brought in our education system. More importance should be given on professional, vocational and technical education. These will make a opening to work in different industrial sectors both home and abroad.
The educated youth should change their attitude to life. They must learn to choose independent career. They can start small business. In fact self employment is possible solution to this great problem. It is very effective to search jobs on various freelance websites and get desired jobs easily.
Steps should be taken to set up co-operative farming, cottage industries and to open new system of public work to create job for the unemployed people.
Aligning the supply of labor with market demand through education system reforms and effective training, exporting man power to industrialized countries, Egypt, we may solve the problem in a great extent. In a country like ours, unemployment problem is hindering our prosperity.
Improving the functioning of the labor market by reducing segmentation and rigidities while protecting workers rights to decent ways and job condition.
Attempts to reduce the level of unemployment beyond the Natural rate of unemployment generally fail, resulting only in less output and more inflation. However, theoritically the following ways and methods may reduce unemployment.
Phillips Curve
It used to be largely believed that unemployment could be solved using the Phillips curve. This involves increasing inflation to reduce unemployment by fooling workers into accepting jobsat a lower rate than they would otherwise have done, due to the declining value of money. However, since the work of Milton Friedman, it is widely accepted that the Phillips curve is vertical in the long run: you cannot achieve a lowering of the unemployment rate in the long run, and attempts to do so will only cause inflation.
Demand side policies
Monetary policy and fiscal policy can both be used to increase short-term growth in the economy, increasing the demand for labor and decreasing unemployment. The demand for labor in an economy is derived from the demand for goods and services. As such, if the demand for goods and services in the economy increases, the demand for labor will increase, increasing employment and wages.
Supply side policies
Minimum wages and union activity keep wages from falling, which means too many people want to sell their labor at the going price but cannot. Supply-side policies can solve this by making the labor market more flexible. These include removing the minimum wage and reducing the power of unions, which act as a labor cartel.
Other supply side policies include education to make workers more attractive to employers. Cutting taxes on businesses and reducing regulation, create jobs and reduce unemployment.
Shifting tax burden
This method will shift tax burden to capital intensive firms and away from labor intensive firms. In theory this will make firms shift operations to a more politically desired balance between labor intensive and capital intensive production. The excess tax revenue from the jobs levy would finance labor intensive public projects. However, by raising the value of labor artificially above capital, this would discourage capital investment, the source of economic growth. With less growth, long-run employment would fall.
Source: World Bank Report,
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