The Impact of the Global Crisis on a Lack of Jobs

Abstract

The global crisis, which began in the US in real estate and transferred to the financial sector, is expanding in two directions: through the US to Europe and other parts of the world, and from financial markets to the real economy. Due to the persistent crisis, we can already speak about the Great Depression, causing one of the worst global unemployment in decades. Long-term unemployment undermines the values of people, their dignity and self-esteem. Workers who have been unemployed for a long period, are considered unemployable, which means a long-term reduction of the workforce in the economy, and hence its production capacity. As in the 1930s, there is again the trend that the long-term lack of jobs is considered part of structural problems that are difficult to solve by increasing demand and boosting the economy. If massive unemployment were based on the fact that too many workers lack the right knowledge and skills, many workers who have such knowledge, would enjoy prosperity. However, that is not the case. We are witnessing universal impoverishment, which occurs when there is not enough demand in the economy.