Unemployment is stagnant - it sounds pessimistic. But is it all so terrible?

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In difficult times, economic and financialcrises everywhere the term "unemployment stagnant" sounds. This concept does not inspire hope, but, rather, on the contrary - further aggravates the situation. But the knowledge of the interpretation of terms, the causes of the appearance of this phenomenon, the peculiarities of its flow and possible consequences reduces panic and makes it possible to objectively assess the situation.

unemployment is stagnant

Definition value

The term "unemployment" meanssocio-economic phenomenon, in which part of the country's able-bodied population is not employed in the production process. The situation in which absolutely all citizens of the state work is impossible even with forced employment, so there is a concept of a normal (natural) level. In addition, different manifestations of unemployment are distinguished in their manifestation: open, hidden, fluid, stagnant. Each of them has its own peculiarities, causes and consequences. Thus, unemployment is stagnant - this is just one form of manifestation of the economic phenomenon. All of its nuances and subtleties we will consider below.

causes of stagnant unemployment

Who are the "unemployed"?

In order to correctly understand the essence of everythingphenomena, it is necessary to understand who is talking about. Unemployed people are those who have reached working age, do not have a disability or other solid reasons not to be employed. This category of citizens also does not include those who are retired by age, on parental leave, are guardians of incompetent persons requiring constant care, etc.

Stagnant unemployment characterizes that part of the population, which for a long time is unoccupied at will. This category includes:

  • People who work without official employment (illegally).
  • The population employed at home without official registration (artisans, freelancers, etc.).
  • People who could not find a job for a long time and lost hope, stopped all search.
  • Citizens whose education, profession, skills and abilities are not in demand on the labor market.
  • "Doubtful elements" - thieves, homeless people, vagrants, beggars, people with alcohol or drug addiction.
    stagnant unemployment will lead to


In addition to the classical economic downturns,production and a general decline in the standard of living, the causes of stagnant unemployment can also be determined on the basis of the list of persons to whom this phenomenon covers. For example:

  • The growth of taxes and fees leads to the departure of a number of enterprises "into the shade", i.е. people who work there are transferred from the category of officially employed in the permanently unemployed.
  • A drastic change in the economic system eitherorientation of production activities. A striking example of this can be the 1990s: the professions and specialties of people who worked for a long time at the enterprises of the USSR, in the newly-created independent states turned out to be unclaimed.
  • The low level of wages (labor costs) forces citizens to refuse full-fledged employment in favor of crafts or freelancing.
  • Extensive amnesties lead to an increase in the society of able-bodied people who find it difficult to find a good job for a long time.

Negative sides

Unless measures are taken to level the problem, the level will continue to rise, and stagnant unemployment will lead to a number of negative consequences. These include:

  • The growth of social tension and the aggravation of the criminal situation.
  • Decrease in budget revenues.
  • Increase the cost of benefits for the unemployed.
  • Underproduction of GDP, CWP.
  • Growing gap between the social strata of the population.

stagnant unemployment characterizes that part of the population that

Who is responsible?

Unemployment stagnant is a problem of scaleof the whole country, respectively, and should be decided by the state authorities. To date, in addition to traditional payments and one-time assistance, several effective methods have been developed and implemented to combat this phenomenon:

  • State employment centers offercitizens whose occupations, knowledge, skills and skills are not in demand on the labor market, to take courses of retraining and to get an opportunity to find work in another specialty.
  • Special rehabilitation centers help people overcome alcohol and drug addiction, as well as get education and start working.
  • In correctional institutions, convicts trained in working specialties are trained to simplify their adaptation to normal working life after release.
  • A number of different measures for the official registration and state registration of entrepreneurial activities of those citizens who work at home.

These programs require a lot of money from the budget, but in time will give a fairly good result.

forms of unemployment open latent fluid congestion

Positive sides

Unemployment is stagnant is not only negative consequences. Like any socio-economic phenomenon, it has its advantages:

  • Creation of a reserve of labor.
  • Stimulating the state bodies to develop and implement various measures and programs that will be able to offer solutions to several programs at once.
  • Increase of social value and importance of labor among the population.

Thus, the socio-economic phenomenoncalled "stagnant unemployment" is not catastrophic or hopeless for the country, but requires government intervention and control.

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