Economics

Extraordinary Growth Of Unemployment And Upcoming Recession

An overview on job market

Unemployment has been normalised very much in the last two decades, especially in third world countries. And the authorities have used population theory to do so. They have misguided people by telling them consecutive lies. They continuously said that the huge population is the reason for unemployment, it’s impossible to provide jobs for this huge number of people.

They try to make us forget that an increase in population means an increase of consumers, which means the necessity of high productivity. And high productivity can come up only if there is more and more manpower included.

But mechinaries has been developed in a way to eradicate manpower and permanent jobs have been converted into contractual jobs, self services and PPP models. So, apparently, we all are working, but not as job holders.

Relation between unemployment and recession

When there is a lack of jobs and the majority of the population gets less payment than what they deserve, the consuming capacity as a whole gets reduced. Due to that, overproduction arises, and the companies with large loan amounts and low sales try to cope up in that situation and so they lay off their employees and even stop the minimal recruiting they used to do. Hence, recession and unemployment are interconnected in a circular loop. Lack of employment brings the situation of recession and again recession brings more and more unemployment.

Rate of unemployment: worldwide

Presently, the rate of unemployment throughout the world is about 14.6%. Last data has been found is in the year of 2020. South Africa ranks first in the list with a rate of 29.2% unemployed, Kosovo was with 26.2%, Djibouti was with 26.1%. In the US, the rate was 16% during May, 2020. In India, it was about 13.6% in 2021. The situation is very threatening worldwide and there is no resolution till now. Actually there is no shortcut resolution available for this issue. It shows that the capitalist system is in serious threat and can’t survive so long.

Extraordinary growth since lockdown

Right before lockdown, in 2019, the world unemployment rate was 5.3% only. In the US, it was only 3.8%. In India, it was nearly 8%. But, during lockdown, the entire scenario has been changed. Though, everyone describes lockdown as the reason for these all, but in actuality, lockdown was planned and initiated to do these all, to cope up with the financial losses of the corporate giants. Will discuss these in another article someday.

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