Introduction
The amount of views concerning the theme is enormous. Still, frankly speaking, we support the idea that this kind of salary surely has a tough interconnection with an unemployment rate. In such a way, today, we are going to prove this according to the following plan:
1) The prehistory of the aforementioned phenomena;
2) Problems caused by minimum wages;
3) The ways when unemployment can be healed up;
4) What is the direct relationship amid minimum wages and unemployment?
These were four huge questions and issues we will be capable of discussing in this research. Now, let us go deeper with every new point.
Prehistory
Before exploring any event, it always seems right to get to know what caused this or that problem exactly. Moreover, it is known that salvation lay within. This means that it is sometimes appropriate to draw attention to the initial point just to comprehend what has gone wrong. The same thing refers to both minimum wages and unemployment.
However, many of us live the predominant part of life in the twenty-first century, such circumstance as downturn of a population barely appears to be an oddity. According to Thomas Carlyle (1840) - the Scottish philosopher, “A man willing to work, and unable to find work, is perhaps the saddest sight that fortune's inequality exhibits under this sun.” This bright quotation as if pushes us to ponder over the large and historically long sense of unemployment. In other words, this phenomenon goes about the number of people who are willing to work, but still do not have a job.
It is obvious that everybody wants to earn a considerable salary. By the way, many people really reach this. Still, it sometimes turns out that the amount of salary is not always balances comparing to the employee’s effectiveness and value. In general, a minimum wage stands for a legislatively determined amount of salary for a light and unqualified labor.
We would also like to comment on reasons telling us why unemployment appears. To tell the truth, there is a big quantity of the issues creating this common global problem. Among their powerful list, we are to single out the following:
1) People, for instance, have changed their minds and are currently trying to find a very new work;
2) The lack of work has appeared;
3) A company consciously lowers the staff amount according to the economic inequality and slows;
4) The total absence of the wish to work or to be employed.
Problems Caused by Minimum Wages
Well, first of all, it is important to highlight that the meaning of minimum wage is not obligatory tethered to the value of the local living wage. It is generally determined by financial opportunities of the country in the exact period of time.
It is often said that minimum wages are maximum problems. We have decided to choose Ukraine as an example. It seems necessary to note that the regional authorities have not included many basic vital products and services to the minimum expenditures’ list. This is a common situation within many developing countries. Around the sixth part of the population are to survive having their minimum wages. Under such inhuman conditions, those people have to maintain their families. Being said with a share of sarcasm, the worthy senility is guaranteed.
Healing Unemployment
In contrast to the issue of minimum wage, unemployment appears to be a worldwide problem by now. Such a kind of situations appeared at the time negative economic shifts began to take place. This is a phenomenon when a country obtain people who compose a so-called active population and are able and want to work, but cannot find a workplace.
1) Creating new workplaces;
2) Creating employment websites and other similar institutions of occupation.
3) Perfecting the system of information support in the institutions of the afore noted employment;
4) Establishing such opportunities as to retrain and to requalificate those who are unemployed;
5) Supporting the local institutions that occupy themselves with assisting unemployed population.
Minimum Wage-Unemployment Linkage
We must confess that with the minimum wages established, entrepreneurs are more likely not to hire new employees rather than firing current ones. This type of wage is almost perfectly sold by all the categories of people. Still, as it was already mentioned, the ratio between this one and the existing living wage can be fairly sufficient. Thus, the rate of unemployment tends to increase significantly.
It also seems important to grasp your attention to the issue that there are two main reasons why the unemployment rate can be stable:
1) Unemployment benefit payments;
2) Rigidity of the salary.
The actions revealing the first point give people an opportunity to look for a job for a considerable lapse of time. Both determining and paying benefits referring to unemployment heighten its natural level, as this facilitates the fate of jobless population.
Last but not least is that if there is no minimum wage, the rate of unemployment is found out by labor demand and supply.
Conclusion
While investigating this theme, we have determined five crucial issues that can help to resist the emerged problem with job placement. At all, many local dwellers do not correspond the necessary conditions as to earn an adequate amount of money.
References
Carlyle, T. (1840). Finest Peasantry in the World. Chartism (24, 24-35). London: James Fraser, Regent Street.
