Unemployment: what is it, causes, consequences, types

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O unemploymentaffects millions of people around the world, regardless of the degree of development of a country. However, the largest numbers of citizens without formal employment are located in emerging and/or underdeveloped countries, something that worries international organizations, such as the International Labor Organization (ILO) and the United Nations (UN).

Both are developing projects together with the most affected countries in order to reduce the rates of people not formally served by the labor market economy.

Read too: Brazil: underdeveloped or emerging?

definition of unemployment

As a definition of unemployment, we can mention what is in the Aurélio Dictionary of the Portuguese Language. According to the dictionary, unemployment “is the lack of employment; situation in which part of the workforce is unable to obtain employment”.

These simple and summarized definitions do not reflect the anguish of those who are unemployed, but show us what unemployment really is. It is worth remembering that this “occupation” that the dictionary refers to is in relation to formal employment,

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being unemployed those who do not have a job in this way.

Unemployment is felt in various ways, such as lack of money.
Unemployment is felt in various ways, such as lack of money.

We can also define unemployment as something that reaches a large part of the working age population, the call Economically Active Population (PEA), who, when not getting formal jobs, starts to live informally, in underemployment, or even without any occupation. In all cases, these people become part of the Economically Inactive Population (PEI).

However, there are cases in which the formally unemployed (those who had jobs with a formal contract and other CLT guarantees) find employment in the informal market, as street vendors, street vendors, self-employed, among others. These people, even being informally employed (without CLT guarantees), can be considered unemployed by official bodies such as the Brazilian Institute of Geography and Statistics (IBGE).

To IBGE, all people over 14 years of age who are not working but who are looking for work are considered unemployed. However, not having a job is enough to be considered unemployed. There are cases of university students who dedicate their time only to studies, housewives who do not have a job outside their homes, informal entrepreneurs, etc.

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Causes of unemployment

The causes of unemployment are the most varied and diverse, from structural changes and technological innovations to economic and social crises. Let's look at some of them.

the emergence of technical and scientific innovations throughout history, it has always brought about changes in society, behavior and/or economics. As an example, we have the Industrial Revolution, which replaced manufacturing work by industrial work.

For a long time, even at the beginning of the Industrial Revolution, in the 19th century, people left their homes in the countryside to try life in the urban area. Here is a cause of unemployment: the excess labor. It is common to find simple jobs that pay little and with numerous applicants for vacancies, but it may be that there is no vacancy for everyone, generating unemployment.

On the other hand, we have the same technical innovations that require skilled labor, but there are few professionals who fulfill the requirements. One more cause of unemployment: the lack of qualification and professionalization in society.

There are also causes that occur by economic, health, political and social crises. In all these crises, the most vulnerable jobs are the simplest and for which one receives the least, such as general services, auxiliaries and similar positions.

See too: Child labor - exploitation of the child labor force

Types of unemployment

The types of unemployment are related to the causes of unemployment. A portion of the population is unemployed due to some sudden change in society, such as the intensification of technology, economic crisis or even cost containment by companies. See the types of unemployment and its causes:

  • Unemploymentstructural

Occurs when there is a structural change in society. Workers affected by this type of unemployment are unable to adapt to the new reality of the labor market or new labor demands.

Usually occurs when there is economic growth and paradigm shifts, such as replacing the typewriter with the computer. In this example, the typist, if he did not learn to use computers, would be unemployed, falling into this type of unemployment.

  • Unemploymentconjunctural

Occurs by a set of changes, such as:

  • crises
  • pandemics
  • epidemics
  • natural disasters, among others

Of the types of unemployment, this can be considered the easiest to get around, as such changes are temporary, which subsequently leads to the hiring of former workers, when the situation improves.

Queue of unemployed people in search of food, 1929, Chicago.
Queue of unemployed people in search of food, 1929, Chicago.
  • Unemploymentseasonal

Takes place certain times of the year. Very common in agricultural areas, which have great demand during planting and harvesting, but for most of the year, the demand for work decreases, as well as the number of workers.

  • Unemploymentfrictional

Here we have a type that reaches people who may be looking for the first job, who left their old job to look for a better one, or who were laid off and are still looking, but receiving work aid, such as unemployment insurance.

consequences of unemployment

Unemployment has consequences throughout society. This is because, with it, there is a reduction in the number of people with fixed income, which reduces consumption and, consequently, affects the turn of the economy.

Second, a territory (a city, a state or a country) with a high number of unemployed people can mean poor public administration and increase in social differences. These factors can scare away foreign investors who, upon seeing these ills, end up concluding that investing in these places is a risk.

Last but not least, unemployment can bring serious psychological problems to those who are in this condition, like the depression. In this case, it can be said that, in addition to an economic problem, unemployment must be seen as a public health problem.

Unemployment can lead to psychological problems such as depression.
Unemployment can lead to psychological problems such as depression.

Unemployment rate

Worldwide, one of those responsible for measuring unemployment rates is the ILO. This organization has the mission of “promote opportunities for men and women to have access to decent and productive work”, in her own words.

According to the ILO, in 2020, more than 41 million people were unemployed in the Latin America and Caribbean, which means approximately 13% of the PEA. An alarming number, as it highlights the economic weaknesses that countries in this area of ​​the world suffer, in addition to revealing the poor distribution of income and social inequalities.

Also access: Human Rights - category of rights guaranteed to any member of humanity

Unemployment in Brazil

In Brazil, the body responsible for measuring this rate is the IBGE, with the Continuous National Household Sample Survey (PNAD).

  • Unemployment rate in Brazil

According to the 2020 PNAD, the unemployment rate (term used by the institute) in Brazil in the aforementioned year is 13.3%, with a slight increase compared to 2019, when the rate was 12%. In quantitative terms, the 2020 percentage corresponds to more than 13 million Brazilians of working age who are helpless by the formal market.

Queue in Rio de Janeiro for vacancies in a supermarket. [1]
Queue in Rio de Janeiro for vacancies in a supermarket. [1]

The highlight of this research is on account of the Brazilian regions, each one had a different percentage. These differences are explained by the degree of development and qualification of each location. Look at the table:

Unemployed population indicators by region

REGION

2019

2020

South

8%

8,9%

Southeast

12,4%

13,9%

Midwest

10,3%

12,5%

North

11,8%

11,8%

North East

14,6%

16,1%

Source: IBGE

solved exercises

Question 1 - (UCB DF/2016) In recent years, the informal sector has grown in Brazil. The unemployment rate of the economically active population in Brazil was about 5% of the total in the 1980s, and in 2010 it was 7.1%. In the 1990s, the rate reached 9% of the economically active population.

Considering this information about unemployment and the increase in informality in Brazil, mark the correct alternative.

A) The increase in informality in Brazil, nowadays, is directly related to the political crisis and the respective economic consequences, triggered by Operation Lava Jato.

B) The Third Industrial Revolution contributed to the reduction of informal work, as it generated many jobs, resulting from robotization and computerization, from the decade of 1980.

C) Brazilian legislation has become quite flexible, allowing direct negotiation between employers and employees. This change contributed to the reduction of informality.

D) Brazil's increasingly low cost, with the systematic reduction of bureaucracy and the simplification of labor contracts, has contributed, in the last decade, to the increase in formal employment.

Resolution

Alternative A. Informal jobs are linked to unemployment and economic and political crises, showing social and governmental weaknesses.

Question 2 - (IFAL/2016) Currently, globalization is present in everyone's life. It acts in a remarkable way in science, economics, politics, urbanization, etc. When it comes to economics, globalization was vital for the internationalization of financial capitalism, for access to world products and cultures. When it comes to urbanization, there is a unification of behavior patterns, also found in the rural societies thanks to technological and communication advances developed and made available throughout the years old. Although Brazil benefits from globalization, it also suffers from the economic inequalities it provides.

Check below the alternative that, respectively, best demonstrates a positive and a negative aspect of globalization in Brazil.

A) Integration of the country into the international financial market and immediate access to information through the computer network.

B) Encouraging Brazilian industrial development and large-scale employment and income generation.

C) Devaluation of regional culture and national economic prosperity.

D) Possibility of scientific exchange with other countries and the generation of unemployment due to low professional qualification and the unequal competition between the Brazilian national industry and the multinationals.

Resolution

Alternative D. With the globalization, there is the connection with other countries and possibilities of technical and scientific knowledge. However, qualification also increases, which can generate unemployment if candidates are not up to the available positions.

Image credit

[1] Antonio Scorza / Shutterstock

By Attila Matthias
Geography teacher

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