Unemployment affects almost all classes, and crime, and suicide rates also tend to increase
KARACHI: The rate of unemployment is the most important indicator of a country’s economy. High unemployment leads to social and economic problems. Economic problems result in reduced production of goods and services, less distribution of income, loss of tax revenues, and a fall in GDP rate. Social problems result in psychological disorders in people due to economic difficulties.
Unemployment affects almost all classes, and crime, and suicide rates also tend to increase. Frustration also causes people to disrupt the country’s peace through riots, while causing people to fall victim to depression and suicidal tendencies. The purchasing power of people decreases resulting in falling demand for goods and services. The falling demand causes production to decline and this leads to further unemployment. It is a vicious cycle. As we are in the midst of an economic recession, people are worried about the upcoming month of Ramazan and then Eid. The galloping inflation will likely result in people limiting their expenses for the festivities. The only ray of hope is the upcoming budget which will determine key indicators for the country to improve the economy. The budget must include subsidised rates for basics commodities consumed by the common people, and plans to create more jobs.
Industrial and agricultural production should be increased. Exports should be increased and imports reduced. Import of luxury goods should be drastically reduced. Demand for goods and services should be increased to create new jobs. The government must act now.
Atufa Waseem
Published in The Express Tribune, April 22nd, 2019.
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