EFFECTS OF UNEMPLOYMENT Production loss The

EFFECTS OF UNEMPLOYMENT • Production loss. • The unemployed person is not helping the economy • Spending loss. • The unemployed person most likely has no income so they have less to spend and stimulate the economy in an essence, taking away from someone else’s job.

UNEMPLOYMENT Unemployment starts a snowball effect • Once people become unemployed they spend less • Spending less means other companies don’t make as much money. • This then leads to other companies down sizing.

One of many reasons for the sudden increase in the unemployment rates was the construction surge. • Construction workers mainly were a large part. Many workers without a college education found themselves doing construction work for the last ten years that has been a huge booming industry.

When the construction slowed many of these workers lost there jobs. • Since they had no other job experience and had no college degree this made it very challenging for many of them to find work.

UNEMPLOYMENT IN KAZAKHSTAN

Structural unemployment is phenomenon of capitalism. Structural unemployment complemented by frictional unemployment creates a situation when the labor market at the same time has the deficit and surplus of labor power. So in Kazakhstan and Russia, there is a paradoxical situation where unemployment is accompanied by a massive influx of foreign workers. There are two types of foreign labor: the first group - are the numerous guest workers, the second group – minority group of foreign companies’ experts.

In Kazakhstan, as in most other post-Soviet countries, graduates of colleges and universities are among the top contenders for the replenishment of the unemployed list. The reasons for this situation are as massive overproduction of graduates in a number of specialties, as well as very low skills of the majority holders of diplomas. Most of the students with their combination of lack of education and high expectations do not receive confirmation of their ambitions and are prone to frustration and, as a consequence, exhibit an extreme degree of dissatisfaction to their social environment. Therefore, these groups of young people in almost all countries are the main sources formation the protest movements. The situation on the labor market in Kazakhstan is largely the result of saving a significant impact in the public consciousness of pre-modern values. The effect of these values causes the mass to choose a specialty for which there is a clear oversupply, retain a significant degree of dependency. Such attitudes and sociocultural values are common for post-Soviet countries and to change a structure of expectations and behavior only by economic means is impossible. Only a wider social and cultural transformation of post-Soviet societies can change the situation.

USA and Kazakhstan

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