Economic Difficulties That Lead To Unemployment

Economic difficulties that lead to unemployment

Introduction

In the May-Junio-Julio 2019 quarter, the unemployment rate of Metropolitan Lima was 6.0%, presenting a decreasing trend so far this year 2019. In terms of absolute figures it is estimated that there are 313,500 people who actively seek employment. Javier Zúñiga explains the main reasons why the unemployment rate does not lower and continues to increase, they are underemployment and informality. The underemployee is that individual who works in a job with a lower qualification to his.

Developing

In the case of people in which they accept working for less hours than corresponds to a complete working day (8 hours). 40% of Peru’s PEA is underemployed. On the other hand, informality not only affects unemployment, but also the entire economy of the country, because according to figures from the Ministry of Labor and Employment Promotion, 67% of jobs are informal. (Zúñiga) The price increase is due to the increase in product production costs.

Scenario that at the same time is linked by a low level of unemployment that leads to the sum of wages and the lack of qualified labor. Reason why, contrary, the economy is more likely, the inflation is more susceptible to bonanza periods. Employers have in these serious problems to face for hiring coadjores because the demand for work is very low and need to offer high wages.

Which results in the aforementioned increases production costs.

This implies, the rise in prices, when both situations are combined, that is, inflation and unemployment are given together, the economy is destabilized because workers do not have resources to achieve basic maintenance products and as a result ofThis fails to sell their products. It is there where a dangerous economic stagnation is reached for any society. 

The economic effects of unemployment are clearly high, but the social is much greater. Undoubtedday it affects more desperate people for not having a job. 

It can be seen that the more people are unemployed, the more needs they will exist in a country in which the economy is in decline. Where the population rate is abundant and where the increase in prices is greater. While we know, unemployment damages the autonomy of people because it generates deprivation and economic dependence, focusing the social consequences of unemployment, the loss of work weakens the spaces of socialization and 

At the same time, the basic containment space of people is very vulnerable. (Merlinsky). Faced with the existence of low levels of social protection, unemployment generates processes of social exclusion from the impossibility of participating in broader social networks than those of immediate social proximity. An unemployed loses the possibility of maintaining exchange networks with other social groups,

conclusion

From the loss of a greater sociability space that is the workplace. Unemployment brings many problems in society, social exclusion, lack of opportunities and many more social problems that are increasingly complex such as crime, drug trafficking, white trafficking, violence, etc. Reversing these high levels of unemployment, since more than 40% of government revenues are invested in social programs, however, poverty does not decrease and citizen insecurity grows alarmingly.