WHEN WE SPEAK ABOUT UNEMPLOYMENT AND UNDEREMPLOYMENT WE ARE CONCERNED WITH UNDER UTILISATION OF HUMAN RESOURCES.
Human resource are very important of nations economic growth. When people are unemployed , productive human resource is wasted. If and when we give work to unemployed person , he adds something to national income.If human resources are underutilised then their productive capacity may not be utilised fully so production of goods and services will be reduced in that country.
If people are gainfully employed the national income would increase,as a result the government can collect higer tax revenue and this could be used for welfare schemes like provision of safe drinking water, roads, housing for poor etc.
In the words of prof MICHEAL TODARO , 'A close relationship exist between high level of unemployment and underemployment, wide spread poverty and unequal distribution of income.' It shows that poor becomes more poorer and rich becomes more richer.
The unemployed and underemployed are easily attracted towards economic crimes like drug peddling, smuggling, cyber crimes etc.
In a overpopulated country like India , the proportion of unproductive consumers is high i.e. children and old people. In addition to this majority of the people are unemployed this increases the dependency burden.
WHEN PEOPLE ARE UNEMPLOYED THEY ARE FRUSTRATED WHICH LEADS TO VARIETY OF PSYCHOLOGICAL CONSEQUENCES.
Due to unemployment social tension and social unrest go on increasing.
Unemployment among the people creates inferior complexity and leads low dignity and self esteem.
Instead of facing the challenges the unemployed youth run away from reality, they start giving excuses and they blame fate for their failure.Therefore unemployment is socially undesireable.