The
Labour market will consists of
all those people who are able and willing to supply themselves for work (supply
side) and all those people and firms able and willing to employ them
(demand side).
An
economy is an ever changing phenomenon. The pattern of production,
consumption, distribution and exchange are also has to undergo changes as
society demands. This causes a
changing patterns and levels of employment of resources.
There
are tremendous changes took place in
the recent years in the nature of the labour force around the world. The
Significant changes in the nature of the labour force include:
(1)
A rise in the part time
employment
(2)
A rise in temporary employment
(3)
A rise in the participation of women
in the workforce.
(4)
A change in the pattern of employment.
Business
organisations are changing their employment patterns in different ways. It is
recognised that the most important asset of any organisation is its employees.
This is because value is added to goods and services by the quality of the
individuals producing or supplying them. Excellent employees are aware of the
need to respond to customer needs. Well-developed human capital is considered
important for an organization
Unemployment [being without a job] represents a waste of
resources. The goods and services which the unemployed might have
produced are lost forever.
Unemployment is referred to as a situation where the people who are actively searching for job are unable to find a job at the prevailing wage rate, within a reasonable time.
Unemployment
has serious social effects.
1)
People who lose their jobs suffer a
fall in their standard of living, and so far do their dependents.
2)
Unemployment can have damaging effects
on the morale of those out of work, who can be made to feel rejected and
unwanted.
3)
Workers who are unemployed for long periods of time may find it difficult to remain their skills.
4)
Cost of unemployment takes the form of
the taxation that is necessary to provide the money to pay social
security benefit.[if the level of unemployment could be reduced, this money
might be spent on pensions, schools, hospitals, roads and so on or taxation
might be reduced]
The
number of people unemployed [in the UK] is measured by the government each
month. The job seekers allowance
claimant count is the number of people who are claiming unemployment benefits
from government.
The
rate of unemployment is usually
expressed as parentage of the working population or labour force
Unemployment
rate = Registered unemployed x
100
Labour force
These
enable to compare the unemployed situation in different countries.
All
the unemployed are not out of work permanently. The duration of
unemployment of various groups of people are different. If the average
duration of unemployment is for a short period such as a few weeks, then
unemployment is not very serious problem.
Some
of the important features of
unemployment in most of the countries at present are,
1)
Rate of unemployment is growing at a faster
rate.
2)
The number of long term unemployment is
increasing.
3)
The unemployment rate among young
people is very higher.
4)
Unemployment of unskilled workers is
higher than skilled workers (with professional qualifications).