Economic and social consequences of unemployment in Russia

The economic and social consequences of unemployment in Russia are considered one of the most pressing problems of our time. The unemployment of the population is the highest threat to the well-being of the state. Let us further consider what is the socio-economic essence, the consequences of unemployment.

The relevance of the issue

Unemployment affects almost all areas of public life. The most acute problems are manifested in the following areas:

1. To politics. Under the influence of the phenomenon under consideration, changes are occurring, which can manifest themselves in the form of both irresponsible populism and strengthening of authoritarianism of power.
2. The economy. The economic system shrinks when the state’s resource potential is used inefficiently, as unemployed citizens do not participate in the production of the national product and income generation.
3. Social sphere. It begins to degrade against the backdrop of a decline in morality, under the pressure of drunkenness, crime, crises in family relationships, increased psychosomatic disorders and other negative trends.

Key issues

The unemployment of citizens indicates the underutilization of production capacities. Part of the population loses their salaries. Accordingly, the economic and social consequences unemployment in the Russian Federation primarily manifested in the loss of livelihood by citizens. The legislation of the country establishes the obligation of entities to make tax deductions from income. Since unemployed citizens do not have it, the budget loses some of the funds that could replenish it.

People who do not work lose their skills over time. In addition, the economic and social consequences of unemployment are manifested in the obsolescence of knowledge possessed by the able-bodied but not engaged in professional activities population. Subjects who are not involved in the production of goods begin to lose self-esteem and confidence. Unemployment is inaction. It can provoke degradation of personality.

The economic and social consequences of unemployment for society are also an urgent problem because a large percentage of the unemployed are young people. Because of this, the threat of rampant crime intensifies. The unemployed population is undergoing stress. It, in turn, contributes to the deterioration of health, the emergence of a variety of pathologies. However, citizens often lack funds for treatment.

This is far from all the socio-economic consequences of unemployment (employment). If the percentage of unemployed exceeds the maximum permissible indicator, conflicts between different segments of the population are likely to aggravate. A critical value is 10-12%.

Statistics

During the reforms in Russia, the highest unemployment rate was observed in February 1999. That year, the number of unemployed citizens was 10.4 million people. This is approximately 14.6%. Over time, the number began to decrease. In 2005, the number of unemployed in the Russian Federation was 5.2 million. At the same time, from 1992 to 2003 there was an increase in the average length of the search period for work - from 4.4 months to 8.5. At the end of 2006, the country's unemployment rate was at around 7%.

Background

In the early 1990s, Russia made decisions regarding the liberalization of markets. It was supposed to open them to potential participants: both foreign and domestic. In addition, price liberalization has begun.The government estimated the likely scale of unemployment.

It is worth noting that domestic industry was uncompetitive. The enterprises of the country in their productivity lagged behind foreign ones by 2-3, and sometimes even more times. In this regard, it was assumed that after the opening of markets, active crowding out of domestic companies would begin. In this situation, a political decision was needed. There were two options:

1. To carry out a rigid restructuring of the structure of the economic system through the bankruptcy of companies, which would provoke a sharp jump in unemployment.
2. To support inefficient production while maintaining a formal high level of employment of citizens.

The government has chosen the second path, fearing an open conflict. Support for inefficient production soon led to high inflation and a crisis in public finances.

Unemployment: types and socio-economic consequences

There are several types of phenomenon under consideration. In economic theory, unemployment is distinguished:

1. Frictional. It arises in connection with the search for vacancies. That is, the unemployed are citizens who quit from one enterprise, but have not yet settled on another.
2. Structural. It is longer than the first. Such unemployment arises due to the delay in the reaction of the structure of labor resources to changes in demand for them.
3. Seasonal It arises in those areas where people are busy for a certain time: in agriculture, tourism, etc.

Characteristic

Usually, frictional unemployment is short-lived. It shows the normal course of the redistribution process of the slave. strength. In this regard, it is considered inevitable and in some cases desirable. In the process of economic development, there are changes in the structure of consumer demand and the production technologies used. Therefore, the need for some labor resources begins to decline in the market, and the need for others arises.

Moreover, their existing structure reacts to such changes with a delay. The result is unemployment. Existing personnel need to undergo retraining. This takes some time. As a rule, the majority of employees successfully pass this period. But it’s quite difficult for some citizens to switch to a new system, so they become unemployed for a long time.

Economic and social consequences of unemployment

The unemployment of citizens entails significant costs. In particular, enterprises produce a smaller volume of products and do not fully utilize production capacities. Relationship between unemployment rate and the lag in the volume of domestic product is expressed in Oaksna's law. If its actual parameter exceeds the natural one by 1%, the actual GNP indicator is 2.5% behind the potential GNP.

The economic and social consequences of unemployment are manifested in a significant decrease in the quality of life of the population, which turned out to be unemployed. This is due to the fact that professional activity for many acts as the only source of income. In the labor market in this situation, competition increases. Therefore, the level of salary of people who are employed in enterprises is significantly reduced.

Unemployed citizens are entitled to benefits. However, state support is formed from the budget, the revenue part of which, in turn, is made up of mandatory contributions (personal income tax, etc.). Thus, the economic and social consequences of unemployment are manifested in increasing the tax burden on those citizens who are employed at enterprises.

Conclusion

The consequences of unemployment, discussed above, indicate that this phenomenon is very dangerous for society and the individual. It requires the active participation of the state.Government programs should be focused not only on eliminating consequences, but also on preventing crisis phenomena in society.

At the same time, many experts believe that the unemployed population forms a reserve, which is necessary for the normal functioning of the economic system. In this regard, state policy is aimed, on the one hand, at the formation of mobile labor resources, and on the other, at preventing and eliminating the negative effects of unemployment.