Unemployment means when a person is unable to get a position in a firm even after higher degrees and so much hard work and months of struggle, the unemployment rates is related to the number of people who are well qualified and still do not have any job and work. The total rate can be finding out by dividing the number of unemployment individually by the number of people who do have jobs and works to do. The rate increase very dramatically in case a country face recession period. In 2012 according to the international labor organization report it was a fact that up to 200 million people were jobless in all over the world and the percentage was 6%.
Even after the global industry has grown so much and it has become so much bigger there are still people who are fighting with this issue. Many organizations and higher authorities are debating about the reasons and problems which people are facing because of this and solution to minimize the rate but they have failed to come up with any solid resolutions to solve this issue. Many organizations such as classical economics, new classical economics and the Austrian school debate that the industry’s methods are the most reliable for solving this issue. They were also against the imposition and interference of outside such as unionization, laws, taxes, and bureaucratic work rules that make people unhappy and all these rules and regulations put them off from hopes and struggle for job seeking.
Keynesian economics on the other hand claims that the intervention of government has in the economy of countries have lessen the rate of unemployment during the time of recession. This theory was the result of the shocks that lessen the want and comprehensive demand of goods and services and it has been proved the biggest reason of less demand of new staff and employees. Keynesian models in fact demanded the interference of government so that the rate can be reduced of people who are without jobs. They seek government’s attention in matters like making policies for funding job creation, expansionist financial policies, and financial incentives. Some people claims that the main reason for companies giving no attention to the world’s biggest issue is that they only want to increase the money, they do not want to increase the product so they do not feel any need for employees. Earning profits without worker is not a possible thing, because industries will have to make products so that they can sale them and get money, and it cannot be done without labor.