Some of the well-known effects of unemployment on the economy are:

Unemployment financial costs The government and the nation suffer. In many countries the government has to pay the unemployed some benefits. The greater the number of the unemployed or the longer they are without work the more money the government has to shell out.

Therefore, the nation not only has to deal with the lost income and decreased production but also with additional cost.

Spending power The spending power of an unemployed person and his/her family decreases drastically and they would rather save than spend their money, which in turn affects the economy adversely.

Reduced spending power of the employed Increased taxes and the insecurity about their own work may affect the spending power of the working people as well and they too may start to spend less than before thus affecting the economy and also the society in a negative manner.

Recession With the increase rates of unemployment other economy factors are significantly affected, such as: the income per person, health costs, quality of health-care, standard of leaving and poverty.

All these affect not just the economy but the entire systems and the society in general. Here are some aspects of the impact of unemployment on our society.

As it said in another source:

Economic costs of unemployment

Most economists agree that high levels of unemployment are costly not only to the individuals and families directly affected, but also to local and regional economies and the economy as a whole. We can make a distinction between the economic costs arising from people out of work and the social costs that often result.

Lost output of goods and services

Unemployment causes a waste of scarce economic resources and reduces the long run growth potential of the economy. An economy with high unemployment is producing within its production possibility frontier. The hours that the unemployed do not work can never be recovered.

But if unemployment can be reduced, total national output can rise leading to an improvement in economic welfare.

Fiscal costs to the government

High unemployment has an impact on government expenditure, taxation and the level of government borrowing each year

An increase in unemployment results in higher benefit payments and lower tax revenues. When individuals are unemployed, not only do they receive benefits but also pay no income tax.

As they are spending less they contribute less to the government in indirect taxes.

This rise in government spending along with the fall in tax revenues may result in a higher government borrowing requirement (known as a public sector net cash requirement)

Deadweight loss of investment in human capital

Unemployment wastes some of the scarce resources used in training workers. Furthermore, workers who are unemployed for long periods become de-skilled as their skills become increasingly dated in a rapidly changing job market. This reduces their chances of gaining employment in the future, which in turn increases the economic burden on government and society. See the revision page on long term unemployment

Social costs of unemployment

Rising unemployment is linked to social and economic deprivation - there is some relationship between rising unemployment and rising crime and worsening social dislocation (increased divorce, worsening health and lower life expectancy).

Areas of high unemployment will also see a decline in real income and spending together with a rising scale of relative poverty and income inequality. As younger workers are more geographically mobile than older employees, there is a risk that areas with above average unemployment will suffer from an ageing potential workforce - making them less attractive as investment locations for new businesses.

The duration of unemployment affects the economic and social costs

It is clear therefore that unemployment carries substantial economic and social costs. These costs are greatest when long-term structural unemployment is high. Indeed many government focus their labour market policies on improving the employment prospects of the long-term unemployed.

The Government of Kazakhstan embarked on realization of Program of employment - 2020

Today, on July 11, the government of Kazakhstan adopted a Programme of employment, designed until 2020.

As stated by minister of labour and social protection of population, Gulshara Abdykalikova, it is planned that, by 2015, the program will cover 1.5 million people, the level of poverty will fall to 6 percent, and the unemployment rate will not exceed 5.5 per cent.

Total 40 billion kzt from the republic budget were allocated to the employment Program in the pilot mode in the current year, It is planned to cover measures of the state support of more than 100 thousand people. The minister also noted that the new program takes its start already this month.

"The money will be directed to education, employment, self-employment of the unemployed, low-income citizens, " - said Abdykalikova. She said that urban population was previously employed on the Road map, and now it will cover villagers. The second direction of financing will be a micro-credit. It is planned to be issuance of up to three million. "It is the smallest of the loan, which is in the republic by the size, but at the same time, it will be easy on the order of granting of, "the minister said.

The third direction - mobility of human resources. As reported Abdykalikova, in accordance with the programs of industrial development, workers, who acquire professions needed by the program, will be attracted.

Let's remind, in February of 2011, during the 13TH congress of "Nur Otan "party, President of Kazakhstan, Nursultan Nazarbayev, instructed the government to start realization of the new program of employment of the country's population.

Road map

"All goals and targets that are set out by the strategy of regional employment and retraining (the "Road Map") in 2009-2010, carried out successfully”, - said Minister of Labour and Social Protection of Kazakhstan Gulshara Abdykalikova. This writes the "Kazakhstan's true”.

The budget allocated for the program 191.5 billion tenge ($ 1.2 billion) in 2009 and 150.6 billion tenge ($ 1 billion) in 2010.

391,000 jobs in the nearly 9 thousand new projects are created in two years. "If the share of Kazakhstan's unemployed at the beginning of 2009 was 6.6 percent (557,800 people) of the economically active population, in the third quarter of 2010, the unemployment rate fell to 5.6 percent (481.7 thousand Kazakhs)" - told the Minister, referring to the state agency for statistics.

As part of the "road map"Government was able to repair 1360 housing facilities, to solve many problems in other areas. "Schools, hospitals, cultural centers and other buildings were insulated, renovated. In two years of the program covered repairs for almost a quarter of all schools and more than 9 percents of all health facilities," - said Abdykalikova.

"We have constructed 70 kilometers of new roads, and carried out major repairs about 5000 kilometers, the maintenanced almost 3 million square meters of coverage of local roads," - added the Minister.

The "road map" has increased the scope of "youth practices" by 20 times in comparison with 2008. About 90.000 young graduates are employed. In 2011, the Ministry of Labor plans to use a "youth practices" about 10 thousand persons under the "Business Road Map 2020".

Thus the implementation of the "road map" is completed. However, as Minister promised, it will not bring serious negative social consequences. "Active business development will create new permanent jobs and wages there will be much higher," - said Abdykalikova.

"Today, when the most difficult stage of the crisis is overcome and economic growth is renewed, there are new challenges of modernization. They will be solved by the business", - concluded the head of the Ministry of Labour.

Conclusion

1. http://tengrinews. kz/kazakhstan_news/192390/

2. http://economics. about.com/od/economicsglossary/g/unemployment. htm

3. http://www.investorwords.com/5144/unemployed.html

4. http://www.indexmundi.com/kazakhstan/unemployment_rate.html

5. http://internationalbusiness. wikia.com/wiki/Kazakhstan_-_Unemployment

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