Wednesday, May 26, 2010

Theory de Unemployment

"Unemployment" is a word, by which every country gets threatened of and want to reduce it, in order to improve its global outlook. Various efforts have been done in past and are still continuing, but this problem is spreading like a tumor cell, i.e., can't be removed from the economy completely.

James Tobin, defined it as "the fraction of work force unable to find work". But the question arises here that are really people want to sit idle at their homes? Are they really not interested in earning some self respect and social status & social attachment by not doing a job? or Is it the system's fault, because of which unemployment rises?

As put beautifully by John Maynard Keynes in his theory of full employment that, "The conservative belief that there is some law of nature which prevents men from being employed, that it is 'rash' to employ men, and that it is financially sound to maintain a tenth of the population in idleness for an indefinite period is crazily improbable - the sort of thing which no man could believe who had not had his head fuddled with nonsense for years and years".

Equally partners of creating such unemployment situation along with the system are potential workforce. They even don't know the difference between a job and a career. The moment they born, they got their brains filled with lots of words from inexperienced and loser people, that you should do this and you should do that. No one ever cares to ask his/her child what he/she wants to become, they just cares for what their relatives and neighbor thinks, although such people never gonna come in turbulent times to lend a hand of help.

Coming back to theory, according to my observations "the sole reason behind the high level of unemployment in any corner of this earth, is due to mismatch between skills of potential workforce and the need of potential employers". Let's look at an example to understand it in much better way, a person go for some technical course let's say MBA in any field e.g., finance. He/She spend whole two years in building and polishing up of his/her skills in that particular area and when he/she is ready to enter the corporate world, what they come across is that industry don't want MBA Finance and if they do they have a highly different job profile for that guy/girl let's say sales where he/she don't have any expertise or interest.

Continuing further to the above example, that person will left with two options, one, is to compromise with his/her interests and go for what industry is offering. This alternative is of disastrous nature to both the players. An individual will take up this job because of not getting of desired profile, due to which 100% justice to that job and organization can't be done. Also, it leads to that individual towards malpractices of fraud or forced him to left the job if he/she is highly ethical. Ultimately unemployment is created.

Second, he/she should wait for the right opportunity. Now, this alternative is highly unrealistic in practice because if such job profiles arises they goes to internal referred people or to some high class B-schools despite of giving chance to a skilled person. This will left that individual as a fresher i.e., without any experience due to which he/she will again not been able to get a good career. So unemployment again is created.

Now the question is why does it happen? The simple answer to this question is lack of trust, lack of confidence on person's skills and cost cutting measures (greed for more profits and less payouts).

But if organizations give a brainy thought to this rising problem they can create a mutually benefiting environment for themselves and for the prospective skilled people. If a person gets his interest area soon after the completion of his/her studies, he/she will definitely give 1000% to that job to make it profitable for organization and indirectly for himself too. Although company can save few thousand bucks by hiring skilled people and getting unskilled works done from them at low payouts in short term, but in long term they have to spend a lot in covering up fraudulent and erroneous works of those unsatisfied workforce.

So, in order to, improve quality of work and other standards organizations should follow effective measures to minimize the extent of this mismatch. Also, potential workforce keep their patience and should not compromise.

Always choose a "Career" not a "Job" because career is portrayed once in whole life but you can get as million jobs throughout your life. So, its in your hand how beautifully you draw your life's portray.

All the best!!!

1 comment:

  1. You are right.. If they will not give us chance to proof our self then how they will know what we can do and how will we get so called much needed work experience..

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