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1.

Why is there so much unemployment and underemployment in the developing countries,


especially in the Urban cities?

Unemployment and underemployment are still major issues in developing countries, particularly in
urban areas, because there are many people who are willing to work but can't find work at current wage
levels, as well as highly skilled workers who are working in low-paying jobs and part-time workers who
would prefer to work full-time. The main reason for this, especially in urban regions, is that people
assume there are more open options to get a job, without realizing that this will strangle the amount of
employment available because everyone will be looking for it. Furthermore, when the pandemic struck,
a global outbreak crisis occurred, businesses were forced to close, which increased the number of
unemployed and underemployed people. As a result, the industry's revenue has decreased, people have
lost their employment. People with degrees and better ability and capacity accept low-skill employment
merely to make ends meet and survive each day, even if the work does not fit their capabilities and
professions. Consequently, one of the causes from it is when an employee leaves their job voluntarily
due to personal concerns, working circumstances, income, and a variety of other factors. Therefore,
when there is an economic downturn, businesses downsize and lay off qualified workers, resulting in
unemployment and underemployment.

2. What are the disadvantages of high unemployment to the economy?

When many employers are unable to find work, the economy suffers as a result. High
unemployment restrained the economy's growth, which damages important economic sectors. The
more unemployed people there are and the longer they are unemployed, the more money the
government has to pay out. High unemployment has far-reaching consequences, affecting everything
from the home to the national economy. Lost salaries, weakened skill sets, and lower corporate and
consumer spending are all symptoms of the harm. The longer high unemployment persists, the more
likely someone is to give up looking for a new work. As a result, unemployed people spend less than
employed people so it will result to resources wasted, because there will be few who will buy goods and
services due to lack of income so it will contribute less to the economy. Adding factor, they are unable
to pay taxes due to a lack of employment, the government is forced to borrow money due to low
revenues and high spending. The quality of health care and living standards are likewise affected by
rising employment rates. This has the aftermath for society and economy as a whole, therefore it will
result in a drop in revenue for businesses and could affect the economy much stronger.

3. Why do people continue to migrate to the cities from rural areas even when their chances of
finding a conventional job are slim?

People move to cities for a variety of reasons, one of which is to find work. Jobs are more plentiful in
urban regions, particularly in competitive, advanced industries like computers, technology, and high-
level organizations. This also falls under the first city bias because they often have a greater quality
of life, and while the cost of living is higher in most cities, for some people the trade-off for a higher
quality of life is worth it. Nonetheless, in rural areas, not everyone has the privilege to study so even
they would turn their back from the better life they are living in rural, they seize the opportunity to
transfer to urban areas in order to live the quality life they desire. Furthermore, they believe that
even small cities' workforces earn great salaries, so it isn't a major concern for them. As I learn
through the discussion, I believe many people transfer to large cities because they want to change
their lifestyle; they are weary of their simple lives and want to experience something new.

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