The problem of unemployment in the modern world

In the 30s, the term of unemployment was used on people who were against unbalanced labour.  They refused the job because of unfair conditions such as low wages and unsafe work environment.  It is voluntary unemployment. They maintain a normal rate of unemployment(M. Stefan, 2013).  However, due to the economic crisis, involuntary unemployment became the major group during the 30’s to 80’s.  These people cannot find a job even though they accept current condition.  Involuntary unemployment causes lots of people have no income.  Basic needs cannot be satisfied is a contributing factor of unstable society.  This kind of unemployment is what we need to solve these days. Based on the research from Economist, between the ages 15 to 24, there are 3000 million teenagers don’t either have school or work.  It’s a quarter of all people in the same age.

Global trading has been developed for hundreds of years.  Nowadays, it is not a curious thing to buy a product made with materials from all over the world.  People get better price to have an enjoyable life.  However, globalization of opening markets and productions increases unemployment rate.  If poor countries in the past exported food products and natural resources, currently over 70% of total exports of goods of these countries is represented by manufactured products, and the share of developing countries in the world merchandise trade amounted to about 1 / 3 of world trade(S. Margulescu & E. Margulescu, 2009).  Most of the products they sell is to developed countries.  The cost of materials and labor is less in developing countries.   Products from there are much cheaper than local products.  The import of cheap products give a big shock to the local economy.

At the same time, it also means import unemployment issue.  Even though there’s a furious economic competition between countries, capitalists still love to set up their business in developing countries.  Since European Colonization started,  there are lots of factories built in developing countries.  Because of lack of development, people in developing countries require much less money.  Developing countries also have plentiful resources. Manufacturers prefer finish the product in local so it costs less.  The disadvantage of this situation is people lived in developed countries don’t have enough job.  The role of developed countries in the global market are mostly consumer.  They have their own brands but factories are mostly located in other countries.

Especially in these days, global trading is a common thing.  First world countries’ investment provide third world countries job opportunities.  Job seekers in developed countries who don’t have professional skills cannot easily find a job anymore.  However, it doesn’t mean the problem of unemployment in developing countries don’t exist.  The growth of the economy leads the growth of population.  Especially, most developing countries already have big population.  In 2013, there are 2 billion population in developing countries.  These countries are now in the transition of urbanization.  As the overpopulation problem exists, overurbanization also becomes a leading factor of unemployment(T.D&D. Erocal, 1990).  Lots of people from rural areas come to cities but there are not enough jobs in urban areas.  They should create different jobs to absorb the rest labour.

However, because of globalization, developing countries feel the advantage of manufacturing.  It’s hard to create new jobs in developing countries.  The jobs created by manufacturing are not enough during the expanded population.  Unemployment starts to become a serious issue all over the world. With the development of technologies, the whole society has a heated discussion on the extent of technologies take job opportunities away from human beings(S. Zhang, 2019).  One hundred years ago, the vast majority of people were working in farms.

Following the improving technologies, small number of farmers can satisfy the whole population.  Obviously, lots of people lost jobs during this transition.  Since the followers of Ned Ludd smashed mechanized looms in 1811, workers have worried about automation destroying jobs.  Machines have much higher effectiveness than human labor.  Non-technological workers lose their position in the workplace.  The only thing they can do is reduce the wages.  However, when the wages been reduced to an unendurable line,  logical workers would refuse the job.

Unemployment rate peakly raised.  The speed of new jobs created every year cannot catch the big number of employees lose their jobs.  Technologies are keep improving.  In these days, there’s a new thing that promote unemployment rate.  Artificial Intelligence is an unavoidable progression during technologies development. Almost 90% of jobs can be replaced by Artificial Intelligence.

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