How to sustain acceptable employment levels Essay

How to sustain acceptable employment levels - Essay Example So hereby, we see that country's unemployment status has an inverse relationship with the economic growth. The economic growth of a country is governed by inflation in the economy, which in turn is governed by the money supply in the economy. NSSO defines Unemployment as a situation in which all those who, owing to lack of work are not working but either seeks work through employment exchanges, intermediaries, friends or relatives or making appeals to prospective employers or express their willingness under prevailing conditions of work and remunerations. (NCERT pg 131) If we consider Milton Friedman monetarist arguments, we see that the money supply is the chief determinant of economic activities, the increase or decrease of money supply in the economy cause changes in the general price level of the economy. An imbalance in the demand and supply of money can disturb the whole economic pricing of the country. The monetary authorities should always focus on maintaining the balances, which is not an easy task, and therefore most of the countries are facing the problems of unemployment. Therefore, the root cause of unemployment is money regulation in the economy. In this new era, with the dynamic development in science and technology, we see that the levels of unemployment are governed by the price and economic growth but at the same time, there is huge disparity in the rates of unemployment, if in one part of the population, the rates of unemployment are decreasing rapidly, the other part has to face the brunt by sitting idle when they are willing to work but circumstances don't allow them. The increasing developments creates jobs for those who are A1, A2, B1, B2 part of the socio economic chart but at the same time cuts the jobs for the other part. Alas!! The situation is so ironical. However, unemployment though always mordant for the individual may be proven beneficial for the economy, it helps to control inflation and economic recession. However, the concept not only provides a safety net for people, who lose their jobs, but also pumps money into local communities and eases the effects of lay-offs. Higher the unemployment, higher will be the job valued and person's urge to stick to one job would increase, ultimately lowering down the attrition rates of the organization. Therefore, unemployment in the economy is a necessary evil for the economy.