Unemployment on Poverty and Inequality

Question: Discuss about the Unemployment on Poverty and Inequality. Answer: Introduction: As a prerequisite to writing my Economics 101 paper, I interviewed Mr. Henry Lloyd. Notably, the interviewee is my older brother. As of now, he is a victim of the long term unemployment menace that has affected the Australian economy for decades. Long term unemployment is a significant problem in Australia. Essentially, an individual is long term unemployed if he or she remains without finding any form of work for over 52 weeks (Australian Policy Online, 2011). For this reason, the person receives income support from the government for over 52 weeks (Australian Policy Online, 2011). In the same view, Lloyd has suffered from long term unemployment as he has been unable to find work for almost eighteen months now. I started the interview by introducing Lloyd to the topic and explaining the relevance of the topic to my studies. After listening carefully to my explanation, he asked me to proceed with the interview. To start off the interview, I requested him to disclose the period length in which he has been unable to secure a job. To this, he responded by saying that he has been unable to find any form of employment in the country for over one and a half years, despite the fact that he has been actively looking for a job. Additionally, he added that he has sent out his resume to various companies in the country and is yet to receive any positive response from them. Markedly, this sad response prompted me to ask if he had been able to find any employment since he graduated. According to Lloyd, he graduated in 2013 with a bachelors degree in business administration. After graduation, he was able to find a temporary job at an audit firm. Here he worked for three months before he was told that the company was unable to accommodate many employees due to high costs. He then explained that after he was laid off, he remained unemployed for about six months before landing another job. This time round, he was employed on contract in a manufacturing company in Melbourne. The contract lasted for one year, after which he was terminated. When I asked him why the contract was not renewed, he said that the company was undergoing a period of continued financial losses and needed to cut down on wage costs. For this reason, many employees who were employed on contract basis had their contract terminated after the end of the agreed term. We went silent for a momen t before I could ask the next question. Then, I requested him to tell me the how being long term unemployed has affected him as an individual. In response, he took a deep breath and then explained that the continued period of joblessness has made him dependent on the other people, especially my parents. He further explained that he has been unable to move out of the family house and start his own family due to the lack of income to support a new family (Jericho, 2014). For this reason, he has remained a bachelor despite being old enough to marry and raise his own family. Additionally, he clarified that being jobless has eroded his confidence and selfesteem, increased stigma and shame and also alienation among his peers (Bassett, 2011). There is also increased family tension as he is under constant pressure from my parents to get a job (Leahy, 2013). Generally, long term joblessness has adversely affected his social life. In retrospect, I inquired if continued joblessness had any impact on a persons skills and economic value over time. To this, Lloyd responded by explaining that one adverse effect of long term joblessness is skill atrophy (Cavalho, 2015). More specifically, he explained that the longer he remained out of work, the more likely his skills deteriorated (Saunders, 2002). Mainly, this is due to the lack of use of the initial skills and training (Wade, 2014). Besides, employers seek years of experience, something that he does not have due to the continued period of joblessness (Loussikian, 2014). In this regard, his chances of getting an employment opportunity dwindle as time passes. To conclude the interview, I asked Lloyd to share with me how the experiences of being long term unemployed have affected his view and thinking about the current events in the country. Notably, he took this question with a lot of regards and explained that being unemployed has made him more attentive to the current economic events. He narrated that he is hopeful that the government will work out a strategy to increase the level of employment in the country. In addition, he is also watching out for government training programs that may be initiated to help him upgrade his skills to meet the requirements of the employers in the country. In the same view, the interview changed my perspective and view of things about current events. More precisely, I learned that long term unemployment is a persistent menace in the country, and could affect even individuals with exceptional academic qualifications. I had never discussed the topic with my brother, and it was great to hear what he had to say about the current long term unemployment problem in the country. References Bassett, L. (2011). Study: Longterm Unemployment Has Disastrous Effects On Health And Longevity. The Huffington Post. Retrieved on 21 Apr. 2017, from: https://www.huffingtonpost.com/2010/11/05/study-longterm-unemployme_n_779743.html Carvalho, P. (2015). Australia's unemployed youth are getting priced out of the market. ABC. Retrieved on 21 Apr. 2017, from: https://www.abc.net.au/news/2015-11-23/carvalho-youth-unemployment-priced-out-of-the-market/6964232. Jericho, G. (2014). Our long-term unemployment headache. ABC. Retrieved on 21 Apr. 2017, from: https://www.abc.net.au/news/2014-03-26/jericho-our-long-term-unemployment-headache/5343362. Leahy, R. (2013). Unemployment Is Bad for Your Health. The Huffington Post. Retrieved on 21 Apr. 2017, from: https://www.huffingtonpost.com/robert-leahy-phd/unemployment-health_b_2616430.html Long term unemployment in Australia: extent and effects You would be surprised!. (2011). Compassion Pop. Retrieved on 21 Apr. 2017, from: https://compassionpop.wordpress.com/2011/10/12/long-term-unemployment-in-australia-extent-and-effects-you-would-be-surprised/. Loussikian, K. (2010). Evaluating Teacher Effectiveness. The Conversation. Retrieved on 21 Apr. 2017, from: https://theconversation.com/long-term-youth-unemployment-triples-in-six-years-study-25543. Saunders, P. (2002). The Direct and Indirect Effects of Unemployment on Poverty and Inequality. Social Policy Research Center. Retrieved on 21 Apr. 2017, from: https://library.bsl.org.au/jspui/bitstream/1/412/1/SPRC%20Discussion%20Paper%20No%20118.pdf. Wade, M. (2014). Long-term unemployment in Australia. The Sydney Morning Herald. Retrieved on 21 Apr. 2017, from: https://www.smh.com.au/national/longterm-unemployment-damages-australias-wellbeing-20140606-39ojk.html.