Principles

Of Macroeconomics
10/2/2020

Final Project Report

Topic:
Unemployment in pakistan
Class:
BBA-6A
Group Members:
M. Usama Imran
(0109)
Zohaib Javed
(0107)
Submitted To: Sir Badar-u-deen Chishti
What is unemployment?
Unemployment, according to the Organization for Economic Co-operation and Development, is
when persons above a specified age are not in paid employment or self-employment and are
currently available for work during the reference period.

Unemployment rate in Pakistan?

Unemployment Rate in Pakistan is expected to be 6.00 percent by the end of this quarter,
according to Trading Economics global macro models and analysts' expectations. In the long-
term, the Pakistan Unemployment Rate is projected to trend around 6.20 percent in 2020,
according to our econometric models.

Positive Effects of Unemployment.

The only positive effects of unemployment are individual effects.

Avoiding Morning Commute: Many people despise rush hour traffic on their commute to
work. Being unemployed means no more getting up early to deal with heavy traffic.

More Time With Family and Friends: This is a strong positive effect of unemployment for an
individual. They can spend time with their children, family and friends. Without a job, there is
more time to participate in family or school events.

Negative Effects of Unemployment.

The negative effects far outweigh the positive effects when it comes to the impact unemployment
has on society and the individual as well.

Not Enough Money: This is one of the adverse effects on the individual. Everything in the
world costs money. If there is no source of income, you're going to have to settle and go without.
If an unemployed individual has a family, it's difficult. Sure, there are unemployment benefits,
but they aren't going to pay for extra things to do with your family and travel to new places.

Health Issues: This is another individual negative effect, but an important one. Being
unemployed can lead to depression, low self-esteem, anxiety and other mental health issues,
especially if an individual truly wants a job but can't find employment. Tension can occur,
causing stress and strain on the body.

Economic Issues: During unemployment, there is no income, which leads to poverty. The
burden of debt will increase, leading to economic problems. When there is unemployment, the
state and the federal governments have to step in and pay unemployment benefits. By needing to
pay more of these benefits, the government must borrow money to pay the benefits or reduce
spending in other areas.

Social Issues: Many crimes are committed by individuals who are unemployed and living in
poverty. When unemployment rates increase, crime rates tend to rise. According to the study in
the Journal of Quantitative Criminology in 2016, individuals who are unemployed for socially
unacceptable reasons and don't wish to seek out job opportunities are more likely to engage in
burglary or robbery.