Unemployment is stagnant - it sounds pessimistic. But is it all so terrible?

In difficult times of economic and financial crises, the term "unemployment is stagnant" is everywhere. This concept does not inspire hope, but, rather, on the contrary - further aggravates the situation. But the knowledge of the interpretation of terms, the causes of the appearance of this phenomenon, the peculiarities of its flow and possible consequences reduces panic and makes it possible to objectively assess the situation.

Definition value

The term "unemployment" refers to a socio-economic phenomenon in which part of the country's able-bodied population is not employed in the production process. The situation in which absolutely all citizens of the state work is impossible even with forced employment, so there is a concept of a normal (natural) level. In addition, different manifestations of unemployment are distinguished in their manifestation : open, hidden, fluid, stagnant. Each of them has its own peculiarities, causes and consequences. Thus, unemployment is stagnant - this is just one form of manifestation of the economic phenomenon. All its nuances and subtleties we will consider below.

Who are the "unemployed"?

In order to correctly understand the essence of the whole phenomenon, it is worthwhile to understand who is talking about. Unemployed people are those who have reached working age, do not have a disability or other solid reasons not to be employed. This category of citizens also does not include those who are retired by age, on parental leave, are guardians of incompetent persons requiring constant care, etc.

Stagnant unemployment characterizes that part of the population, which for a long time is unoccupied at will. This category includes:

• People who work without official employment (illegally).
• The population employed at home without official registration (artisans, freelancers, etc.).
• People who could not find a job for a long time and lost hope, stopped all search.
• Citizens whose education, profession, skills and abilities are not in demand on the labor market.
• "Doubtful elements" - thieves, homeless people, vagabonds, beggars, people with alcohol or drug addiction.

Causes

In addition to the classic economic downturns, a reduction in production and a general decline in the standard of living, the causes of stagnant unemployment can also be determined on the basis of the list of persons to whom this phenomenon covers. For example:

• The growth of taxes and fees leads to the departure of a number of enterprises "into the shadows", i.е. People who work there, move from the category of officially employed in the permanently unemployed.
• A sharp change in the economic system or the direction of production activities. A striking example of this can be the 90s: the professions and specialties of people who worked for a long time at the enterprises of the USSR, in the newly-created independent states were unclaimed.
• The low level of wages (labor costs) forces citizens to refuse full-time employment in favor of crafts or freelancing.
• Extensive amnesties lead to an increase in the society of able-bodied people who find it difficult to find a good job for a long time.

Negative sides

If we do not take measures to level the problem, then the level will continue to rise, and stagnant unemployment will lead to a number of negative consequences. To them it is possible to carry:

• The growth of social tension and the aggravation of the criminal situation.
• Decrease in budget revenues.
• Increase the cost of benefits for the unemployed.
• Underproduction of GDP, CWP.
• Growing gap between the social strata of the population.

Who is responsible?

Unemployment is a stagnant one - it is a problem of the scale of the whole country, accordingly, and it should be decided by the state authorities. To date, in addition to traditional payments and one-time material assistance, several effective methods for combating this phenomenon have been developed and implemented:

• State employment centers offer citizens whose professions, knowledge, skills and skills are not in demand on the labor market, take refresher courses and get an opportunity to find work in another specialty.
• Special rehabilitation centers help people overcome alcohol and drug addiction, as well as get education and start working.
• Correctional institutions conduct training for those convicted of working specialties to simplify their adaptation to normal working life after release.
• A number of different measures for the official registration and state registration of business activities of those citizens who work at home.

These programs require a lot of money from the budget, but in time will give a fairly good result.

Positive sides

Unemployment is stagnant is not only negative consequences. Like any socio-economic phenomenon, it has its advantages:

• Creation of a reserve of labor.
• Stimulation of state bodies to the development and implementation of various measures and programs that will be able to offer solutions to several programs at once.
• Increase of social value and the importance of labor among the population.

Thus, the socioeconomic phenomenon called "stagnant unemployment" is not catastrophic or hopeless for the country, but requires government intervention and control.