Unemployment is a global problem. Why do people lose their jobs?

Unemployment
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Unemployment
Unemployment is a global problem and one that governments have been fighting for quite some time. It stems from a number of factors and one of them is recession. In the recent past in 2008, the world experienced one of the most horrid recession of the economy. Quite a number of countries in the west were affected and some have to this not recovered. As the economy slumped, more and more companies were unable to sustain their staff or a majority of their staff. As such, most of the companies had to work out how they were going to lay off their staff. Different companies relative to the culture, ethics and policies laid off the extra staff differently. There are those that simply laid them off without benefits and there are those that were sent off with a sustainable package to be in a position to find some element of livelihood as they sought after other opportunities elsewhere. As recession hits an economy, the people’s spending power drops with the loss in value of the money. This means that companies do not get as much revenue and as such, they do not have as much money to pay their staff. This leaves them with the ultimate solution of cutting back on costs incurred along their production line. One of those costs is the pays that goes to the staff (Gleeson, 2018). As such, human resources manager are advised to evaluate the departments that can easily be reshaped through taking off some of the staff. This means that people working at the various companies are bound to lose their jobs when recession strikes. This also applies even when a company is making losses in the normal economic growth (Joint Economic Committee Congress of the United States, 2010). In a bid to cut back on the costs, managers opt to lay off some of the workers in sections production that are not as sensitive.
There is also the element of skill, especially relative to advancements in the various fields. As technology comes into play, there are various aspects of production that change. While the impact is not as high as with the case recession, there are significant shifts that cause job loss. In some of the cases, technology will come with shifts in the production systems and more importantly bring about loss in employment. For example with the advent of cleaner energies, some of the older sources lose out in the sense that, the policies shift in favor of new energy production means. This leads to companies in the traditional industries to lose out on profits from the strict policies and hence have to release some of their staff as they try to achieve a lean system (Susskind, 2017).
Unemployment comes with a number of effects to the people that lose their jobs. One of them is that they tend to lose their skills as well especially where stay for long periods without finding work. The degradation of the skills further reduces that their chance of ever getting another position such as the last one. In most of the cases, relative to the financial frustrations that come from losing a job and as such livelihood, crime and violence tend to increase. As unemployed people try to fend for themselves and even their families, they turn to crime (Gleeson, 2018). This is to mean that people...