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HANOI UNIVERSITY

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RESEARCH WRITING

Statement of authorship
Students’ name: Le Thi Anh & Kim Phuong Anh
Class: 1TĐ – 20ACN Student number:
Lecturer:
Name of research paper:
HANOI UNIVERSITY
 
ENGLISH FOR SPECIFIC PURPOSES DEPRATMENT
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CAUSES, EFFECTS AND SOLUTIONS OF UNEMPLOYMENT


IN YOUNG PEOPLE

Student: Le Thi Anh


Kim Phuong Anh
Lecturer: Nguyen Viet Ha
Class: 1TĐ – 20ACN
Course: Research Writing
Date: April 2, 2021
Abstract
All the life’s leisure is associated with work. Nothing shows the importance of work more than
the loss of job or not being able to find one. Unemployment thus is a global hazard showing
every indication of being a depressingly permanent feature of life for the foreseeable future.
Based on secondary research, this paper studies unemployment in order to explain this serious
problem. Particularly, there are three main contents mentioned in the paper, including the causes
of unemployment, its effects and finally some feasible solutions for unemployed. According to
these findings, the research paper draws the conclusion that appropriate measures of
unemployment to be taken to address this problem as soon as possible.
TABLE OF CONTENTS
ABSTRACT …………………………………………………………………………………

1. Introduction ………………………………………………………………………………

2. Discussion of findings …………………………………………………………………….

2.1. Causes of Unemployment ………………………………………………………………

2.2. Effects of Unemployment ………………………………………………………………

2.3. Solutions of Unemployment ……………………………………………………………

3. Conclusion …………………………………………………………………………………

REFERENCES ………………………………………………………………………………
1.Introduction
The recent report by the European Commission has drawn a bleak picture of the economic
situation in the world. The term “youth unemployment” is exactly what its name implies: it
results when young people – defined by the United Nations as 15-24 year-olds – are looking for
jobs but can’t find them. While unemployment itself is a problem – especially in the wake of
COVID 19 – youth unemployment is quickly becoming a global crisis (Youth unemployment: a
global crisis, 2020 ).
Around the world, unemployment affects 67.6 million young people. While the global youth
unemployment rate currently stands at 13.6%, the number varies drastically by region. Youth
unemployment is highest in Northern Africa at an alarming rate of 30%, or more than twice the
global rate. Even sub-Saharan Africa and Northern America – sub-regions with low
unemployment probability – faced youth unemployment rates of almost 9% (2019). There are six
types of unemployment: Cyclical, Frictional, Structural, Regional, Seasonal, Voluntary. This
paper, based on secondary research with the aims of providing young people an overview of
unemployment, discusses the causes, effects and solutions of this phenomenon (A global crisis,
2020 ).
2. Discussion of findings
2.1. Causes of Unemployment

These days, unemployment is a matter of concern. It appears at all ages, developed countries
suffer from it as well as developing countries and it has become a threat to social development.
The International Labor Organization (ILO) estimates that 178 million people are officially
counted as unemployed and another billion or more people are underemployed or working low
wage jobs (2007). These numbers have increased to 212 million (2009). There are many causes
of unemployment such as population growth, rapid technological change or the lack of soft skills
to find suitable jobs. Basically, there are for main causes of unemployment (The International
Labor Organization, 2007).
Firstly, the increased population results in higher unemployment rates. As the number of job
seekers are rising, it is more difficult to arrange jobs for all the people who are looking for jobs
when the request for work is more than the available employment. This will lead to increased
number of jobless individuals. Because the demand-supply gap is still ongoing, the
unemployment situation has not any specific measures. This is very understandable in countries
like China and India.
Secondly, global rapid technological change plays a big role in the rise of unemployment
problem. Nowadays, different machines and technology have replaced manual works. The new
higher machinery substituted the low accomplished or unskilled workers in diverse factories.
This made production faster and more precise, but it resulted in more unemployed people. For
instance, when private computers use instead typewriters, typewriter turn into unemployed and
had to discovery further manufacturing to be employed in. Additionally, according to the
International Labor Office technological advancement may have had a more significant contact.
The new technological advances have eliminated the less eradicate mission; while at the same
time necessitate employee to have higher levels of skills. However, it is uncertain whether
technological change is leading to a net obliteration of engagement, if both direct and indirect
impacts are accounted for (Combating Unemployment and Exclusion, 1996).
The third cause of unemployment is shortcomings about training or skills for employment. This
occurs when the requirements of a person are not satisfactory to meet his job accountabilities. If
the education was not directed towards the labor market then a discrepancy happens hence
leading to organizational unemployment. These singulars face complexities in erudition new
skills appropriate for the required job e.g. computer skills, administration and interaction. As the
need for skilled and educated workers increase for employers, the employment chances for those
without a university education decrease leading to higher unemployment proportion (Eckstein,
nd).
2.2. Effects of Unemployment
With high competition on a global platform, the young people are facing a spread of challenges
of unemployment, such as low income levels and well-being. In addition , there are a range of
long term affects on the lives of these individuals in their later lives. There are three primary
effects of unemployment.
First, the financial problems are rising due to prolonged unemployment. It can be seen that we
can not buy anything without money; the compulsory income buys food, clothing and
accommodation. Because of the loss of income, unemployed individuals will not be able to earn
money to meet financial services. Unemployment also limits one from doing many things and
participating in different activities. Therefore, this effects the national economy leads to poverty.
As a result of the financial crisis and the declined overall purchasing quantity of a country the
unemployed individuals are unable to maintain the minimum standard of living.
There are many social problems caused by unemployment. When free time and stress increase,
the rates of alcoholism, drug abuse and domestic violence will increase. Furthermore, high
unemployment rates often lead to increased marital breakdowns, social discrimination, suicide
rates and crime rates especially among young people (Ottosen and Thompson, 1996).
Unemployment also has been associated with the impaired family functioning as it affects the
relations between parents and their children as well. Unemployed parents spend more time with
their children, but these interactions are inferior to working parents.
In addition, unemployment also has a negative effect on a person's psychology. Many studies
have shown a relationship between unemployment and low self-esteem, leading to depression
and autism. Besides, increased levels of anxiety and stress lead to psychosomatic diseases,
helpless and powerless individuals. In a study on the “Influence of the Social Environment on
Psychology” conducted in 1979 by Dr. M. Brenner it was found that every 10% increase in the
number of people unemployed on average causes an increase of 1.2% in total mortality, a 1.7%
increase in cardiovascular disease, 1.3% more cirrhosis cases, 1.7% more suicides, 4.0% more
arrests, and 0.8% more assaults reported to the police (Brenner, 1979). Furthermore, it has been
shown that prolonged unemployment can also reduce the life expectancy of workers (Anderson,
Economics Fourth Edition, 2006).
2.3. Solutions of Unemployment
Firstly, education in Vietnam is currently not connected to training and demand. Enrollment
quotas are define by each university to meet the teaching needs but do not reach the actual
employment necessity by industry. Therefore, the number of students graduating every year is
much higher than the actual necessarys as well as the number of student redundant will be
unemployed. As a result, a new educational model which has the collaboration between practice
and theory need to build. The university should connect with the business to create the
employment chances for students in order to help them to see the real skills in working as well as
enhance their professional knowledge.Moreover, due to the financial crisis, many companies had
to let go of a large number of their employees. Many more closed down, not being able to cope
with the expenses and mounts of debt. As a result, a lot of people lost their jobs. The solution in
this particular case for people, to start creating their ventures. The financial crisis may have
reduced job opportunities but it also created needs that were not present before. And these needs
could be the biggest job opportunity for people to escape unemployment. (iED Team | 17 July,
2020 )

After that, the legal agencys should apply the policies to solve the employment of young people
by target groups. For youth groups who graduate from universities, colleges, and vocational
secondary schools, they should be used in the economic sectors which have the high demand of
labor quality, preferential policies and employing talents. In addition, the industrial areas should
be developed in order to attract a lot of laborers who are not highly qualified for works. For the
unemployed youth group, it is the necessary to encourage the development of private economic
areas, small and medium businesses and individual business households to attract more labor and
create jobs for them.

Finally, the Government must play its role by creating enabling socioeconomic and political
environment and should have policies in the unemployment insurance system to support
unemployed. There is a fact that, unemployment insurance may support to make the lives of
workers as well as provide the helping for them in order to find out a work as soon as possible.
In the short term, due to the fund's limitations, unemployment insurance is planed only for
people who lose their works and only cover for a certain period of time while workers are still
unable to find a job. In the farther future, unemployment insurance is necessary for both young
and elder who do still not look for the job.
3. Conclusion
In the era of remarkable technology development, unemployment is an inevitable problem. It is a
problem that is difficult to be completely solved, especially after the outbreak of the epidemic in
many countries around the world .It is crucial that people must be aware of the problems where
unemployment is directly affecting people's lives such as population explosion or lack of soft
skills. Moreover, we also need to find suitable and effective solutions such as training children
from school, creating an enabling socio economic and political environment in the insurance
systems of the unemployed. Obviously, those solutions will take time and a lot of effort from
governments and  society; however, it would bring a better life and future for everyone.
REFERENCES

Andreas, (n.d.). Unemployment: Causes, effects and solutions. Retrieved from


https://environmental-conscience.com/unemployment-types-causes-effects-solutions/?
fbclid=IwAR1yiyK9KmLS0L3rIMtllB2NqOlMNx0U8Qm7EmujzrCutac_8ebX98JWBTQ

CFI, (n.d.). What is unemployment? . Retrieved from


https://corporatefinanceinstitute.com/resources/knowledge/economics/unemployment/

UKEssays. (November 2018). The Effects and Causes of Unemployment. Retrieved from
https://www.ukessays.com/essays/economics/the-effects-and-causes-of-unemployment-
economics-essay.php?
fbclid=IwAR1IPMjKuzBxptaBITI9HliPI0fQ95VBryNeQ4gzZlHMRwJgCANtgoxAsm4#citethi
s

Peace, (September 9, 2015). Youth Unemployment Causes and solutions. Retrieved from
https://peacechild.org/youth-unemployment-causes-and-solutions/?fbclid=IwAR3-NrC3KCO-
rKuVawgOCpnK2X4qgOh_Cc2YDnIPMXRlqL6o8UfQp-UnGVE

Tejvan Pettinger, (10th Nov 2019). Definition of unemployment. Retrieved from


https://www.economicshelp.org/blog/2247/unemployment/definition-of-unemployment/

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