The economic welfare of any country depends on the rate of the economic growth. There are several determinants or the factors for the economic development of a country like industrialization, agriculture, population, employment etc., one of the major indicator for the economic growth is employment rate, as it has an adverse impact on the whole economy. Whenever there is high degree of employment rate the production improves thereby increasing the standard of living (Anderson, 2006).
High unemployment rate in a country leads to social and economic problems in the community as a whole. Economic problems result in less production of goods and services, less distribution of income, loss of tax revenues, fall in GDP rate etc. (www.economywatch.com). Social problems cause 's social ills and shows effect on individuals financially and psychologically. Individuals cannot meet their financial obligations on time and getting high stress which leads to problems like ill-health, premature death, suicides etc. (Clark, 2003)
The economists describe unemployment as a condition of jobless within an economy. Unemployment is lack of utilization of resources and it eats up the production of the economy. It can be concluded that unemployment is inversely related to productivity of the economy. The history of unemployment is directly related to history of industrialization. It leads to unwanted job losses and willing workers without job. It is worthwhile to mention here that not