ECO Report 211 - assignment work on employment PDF

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UiTM CAWANGAN PERLISECO 211:UNEMPLOYMENT IN BANGLADESHLECTURER : SIR MARWAN HASSIM @ HASHIMNAME STUDENT ID1. Nur Suhaila Binti Bokhari 20182702522. Nurul Izzah Binti Amuary 20184334783. Nur Fazliyana Binti Mohd Razi 20186557344. Qisthina Shuhada Binti Zulkefli 2018278756TABLE OF CONTENT:CONTENT PAGE...

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UiTM CAWANGAN PERLIS

ECO 211:

UNEMPLOYMENT IN BANGLADESH

LECTURER : SIR MARWAN HASSIM @ HASHIM

NAME 1. Nur Suhaila Binti Bokhari 2. Nurul Izzah Binti Amuary 3. Nur Fazliyana Binti Mohd Razi 4. Qisthina Shuhada Binti Zulkefli

STUDENT ID 2018270252 2018433478 2018655734 2018278756

TABLE OF CONTENT: CONTENT

PAGES

1. Introduction

3

2. Types of Unemployment

4-5

3. Causes of Unemployment in Bangladesh

6-7

4. Unemployment Rate in Bangladesh

8

5. Measures to Control Unemployment

9-10

6. Impact of Unemployment

11

7. Conclusion

12

Introduction

Labour force is defined as people from the total population above 15 years age, who are not in any institution and are either employed or unemployed but actively seeking employment. Unemployment means labour force participants being available and willing to work, but are unable to find jobs. Therefore, the unemployment rate is a percentage of the labour force that is unemployed and is actively seeking employment. Unemployment issue has become a great concern all over the world included in Bangladesh. Not only in Bangladesh, thousand of people in our country are without any job. Unemployment scenario of the graduate level in Bangladesh has been a serious problem.

TYPES OF UNEMPLOYMENT

1) Frictional Unemployment - This is temporary unemployment. It occurs when people are in between jobs, or are entering or reentering the labor force. Those people whom just graduate and start searching for jobs and those quit from jobs and looking for new jobs included in frictional unemployment. They need some time to search for new jobs that are suitable to their needs and qualifications. So they are temporarily unemployed in the limited period of time.

2) Cyclical Unemployment - This unemployment is caused by a decrease in aggregate demand due to a change in business cycle. When an economy is under recession, the demand for products decrease and therefore the demand for workers are also decrease. Many people become unemployed because of this economic condition. Cyclical unemployment is a matter of serious concern compared to frictional unemployment because the latter in involuntarily and continues until the economy comes out of the recession and takes several years to recover.

3) Structural Unemployment - This unemployment occurs when there is a change in the structure of an economy. Therefore the skills of workers are no longer suitable with the jobs available. It occurs because the composition of the labor force does not respond quickly to meet changing demands, technological changes or competition from imported goods. The workers find that their skills and talent are obsolete and unwanted due to changes in technology and consumer demand. For example, in the agricultural sector, many unskilled and uneducated workers are laid off because of modern mechanization. A structural unemployed person faced difficulties in finding new job without undergoing training or having additional education.

4) Seasonal Unemployment - It occurs when certain product cannot be produced during a certain season. Therefore, many people are temporarily unemployed during this season. For example, during monsoon season, fisherman, rubber-tapers and farmers will be temporarily unemployed. Many people are also employed at tourist spots during peak periods such as during festive periods, and are unemployed during off-peak periods.

CAUSES OF UNEMPLOYMENT IN BANGLADESH

1) Rapid Population Growth It is the leading cause of unemployment in Rural Bangladesh, the population is increasing rapidly. It hit differently and affected the unemployment in two ways. In the first place, the growth of population directly encouraged the unemployment by making large addition to labour force. It is because the rate of job expansion could never have been as high as population growth would have required. It is true that the increasing labour force requires the creation of new job opportunities at an increasing rate. But in actual practice employment expansion has not been sufficient to match the growth of the labour force. Besides that, affected the unemployment situation by reducing the resources of capital formation. Any rise in population will increasing government expenditure which is maintenance and education. In addition, more resources get used up in private consumption such as food, clothing, shelter and some on in public consumption which is drinking water, electricity, medical and education facilities. Hence, it will reduced the opportunities of diverting a large proportion of incomes and saving also investment. In conclusion. Population growth has created obstacles in the way of first growth of the economy and reducing the growth of job opportunities.

2) Limited Land Land is the gift of nature. It is always constant and cannot expand like population growth. Since, the population rate in Bangladesh increasing rapidly, the land is not sufficient for the growing population. As a result, heavy pressure occurred on the land. People depend directly on land for their livelihood. Land is very limited in comparison to population. It create the unemployment situation for a large number of person who depend on agriculture.

3) Not Good In Employment Planning The employment planning of the government is poor as population growth keep increasing day-by-day. Employment opportunities did not increase according to rate of population growth. Therefore, a great difference is visible between the job opportunity and population growth. On the other hand it is very tough task on the part of Government to supply job opportunities to all people.

UNEMPLOYEMENT RATE IN BANGLADESH

According to the graph, Unemployment Rate In Bangladesh decreased to 4.50 percent in 2010 from 5.10 percent in 2009. Unemployment Rate in Bangladesh is reported by the Bangladesh Bureu of Stastistic. From 2003 until 2010, Bangladesh Unemployment Rate averaged 4.6 percent reaching an all time high of 5.1 percent in December of 2009 and a record low of 4.3 percent in December of 2006.

MEASURES TO CONTROL UNEMPLOYMENT

1) Population control As rapid population growth is being said as one of the causes of the unemployment in Bangladesh, people in Bangladesh should be more aware of this matter and take it into consideration. Family planning is one of the way to control the growing population. It is should be recognised and implemented in every family that lives in Bangladesh, effectively and widely. It is because if the number of population keep growing, the number of people being unemployment will also increase in huge amount and it also will affect the economic growth of the country. If the population kept growing widely, it might seems it won’t be effecting the life of people in Bangladesh in ecomic way at first, but as time passed by it somehow will cause trouble and make their children suffer and to go to another country to find job as they got unemployed at their own country. 2) Development of new land The government should develop more new land in order to create more jobs opportunities especially to those who lives in countryside. The government and other big companies that manage jobs in this area should really be aware of this and keep focusing on developing new land. This development can help to reduce the number of people who is being unemployed. Plus, it is not only helps people who are unemployed but also helps the country to reach a certain point in ecomic way that can be equal or more better than other countries as well.

3) Job creation in various sectors of an economy Aside from developing new land, the government also need to provide various jobs opportunity with various department. This way, more

people will get employed by the company based on their skill and qualification. For example, if the company are working on economy sectors, there are a lot of jobs to offer on various department such as transportation, finance, insurance, services, tourism,manufacturing and many others.

This is very important to help reducing the number of people who are being unemployed. Jobs on various department are very needed in every company that exist in the world. It is because it’s not only going to help to reduce the rate of unemployment but also help the company to move forward much better and work faster on each project that they are dealing with.

4) Changes in training and education system The government should change the education system to be more better. They likely need to change most part of the education. For example, they should give a better opportunities to those who have higher educational background such as signing them to enter universities or colleges. Plus, those who already finished college or universities should start to open a small business as a source of income, instead of staying at home and enjoy being unemployed. In addition, more training should be provided for individuals who have difficulties with getting a job especially those who have lower educational background. It is because it can give them more opportunities in securing a job in departments that required more physical strength rather than higher education level. When individuals have a better skill and knowledge, the opportunities find a job will be more easy. So, the government really should change how the training and education system works in their country in order to reduce the percentage rate of unemployment people in Bangladesh.

IMPACT OF UNEMPLOYMENT

1) Effects on Individuals and Society - Unemployment is much more than an economic problem, it is social problem as well. a) Loss of income and self-respect A worker who is unemployed for a long time may face financial problems, and consequently, lose his/her selfrespect and the respect of immediate family and friends. This leads to frustration, causing him/her to turn to alchohol or drugs or resort to life a crime. b) Loss of job skills Unemployed workers may lose their job skills, due to lack of application. Retraining and educating them may prove expensive, c) Social and political problems In some extreme cases, unemployed workers may join radical groups and engage in troublesome social and political activities. The crime rate would be high, if unemployment is high.

2) Effects on the economy - High unemployement rates will affect the economy. The cost of unemployed is measured as the goods and services which society could have produced, but did not. The GNP gap is one of the ways to measure the cost of unemployment. Unemployment incurs the loss of government revenue obtained through personal taxes. Certain countries provide unemployment benefits, which from part of government

expenditure. This could reduce development activities of the economy. Slow economic growth and low output might lead to a depression.

CONCLUSION

Unemployment is a serious social and economic issue that results in a tremendous impact on everything but is often overlooked. A stronger system of assessing unemployment should be put in place in order to determine its causes and how to address it better. It is a great curse to nation and can reduce development activities of the economy. We should make all out efforts to get rid of this curse....