ECONOMIC ASSINGMENT

(Impact of Unemployment on Malaysia's Economy)

History

Over 150 days have passed since the government decided to impose the Movement
Control Order (MCO), closing the industry (GSC).

Cinemas, which fall under the category of Last First Close to Open businesses, have
had to sell their goods and snacks in order to stay in business over the past few
months. Some of them have even had to go through voluntary liquidation, which has
resulted in job losses.
The local film industry is currently experiencing a crisis, according to Koh Mei Lee,
Chief Executive Officer of Golden Screen Cinemas Sdn Bhd (GSC).

"Cinemas have been shuttered for nearly a year since the outbreak in March 2020.
The industry experienced 90% annual income declines and losses of up to RM500
million in 2020, he said.

"We have incurred significant losses from the extended closure because theaters
primarily rely on exhibition and have no other way to screen movies digitally.

"Although cinemas have undertaken cost-saving measures and careful cash flow
management, the prolonged closure has depleted all cash reserves and exhausted all
bank facilities." The third-biggest chain of theaters in Malaysia, MCAT Box Office
Sdn Bhd (MBO Cinemas), was forced into voluntary liquidation, which led to a large
number of layoffs.

Koh issued a warning, saying that more theaters would have to close if the shutdown
goes on.
"More than 20,000 Malaysians in this industry are at risk of losing their jobs if the
cinema industry collapses."

The impact of the covid 19 pandemic on Golden Screen Cinema (GSC)

1. Cinemas and movie theaters have been closed

2. The festival has been canceled or postponed
3. The release of the film has been moved to a future date or postponed indefinitely.
4. Box office receipts declined by billions of dollars
5.Streaming becomes more popular
6. The stock of film exhibitors decreased dramatically
7.Many blockbusters that were initially published in the world will be published
between March and November postponed or canceled around the world
8. The release of the film was also stopped which mean
1) Analyse the economic consequences of unemployment in Malaysia on both micro
and macro levels

Micro Level

1. Loss of Income
Loss of income has a direct impact on an unemployed person's standard of living and
capacity to meet essential needs.

2. Poverty and Inequality

Long-term unemployment can worsen income inequality and contribute to poverty
since unemployed people may find it difficult to pay for necessities.

3. Health Effects
Increased stress, mental health problems, and a general decline in an individual's and
their family's well-being can all be brought on by unemployment.

4. Skill Erosion
Long-term unemployment can lead to a loss of human capital and a decline in skills,
which makes it harder for people to reenter the workforce.

5. Social problem
Because people may turn to illegal activity out of financial strain, unemployment can
exacerbate social issues like crime rates.

Macro Level

1. Reducing Consumer Spending

Because unemployment lowers household income, consumer spending declines.
Business and the general demand for goods and services are impacted as a result.

2. Low Tax Revenue

The government receives less money from income taxes when there are fewer people
working. This restricts the government's capacity to fund infrastructure and public
services.

3. Increased Social Welfare Spending

Because the government must set aside funds for unemployment benefits and
assistance programs, unemployment puts a strain on the social welfare system.

4. Decrease in Productivity
A decrease in total productivity can result from unemployment since fewer workers
are producing the same amount of goods and services.

5. Business Closure
Sales declines in industries that primarily depend on consumer spending can result in
company closures and have an impact on the entire supply chain.
6. Investment Impairment
High unemployment rates can deter both domestic and foreign investment because
they give businesses the impression that there isn't enough demand in the market.

7. Potential for Recession

Extended durations of elevated joblessness may be a contributing factor to a
recession, since lowered consumer expenditure and business assurance affect the
general growth of the economy.

2) Discuss the social and psychological impact of unemployment on individuals and

communities

Social impact

1. Stigma and Identity Crisis

Because employment status is often correlated with one's personal worth in society,
being unemployed can result in feelings of shame and social stigma. When someone
loses their job, they could experience an identity crisis.

2. Social Isolation
Social isolation may be exacerbated by a loss of regular social interaction at work.
People may stop participating in social activities out of embarrassment or because of
the financial strain that comes with being unemployed.

3. Family Tension
Family ties are frequently strained by unemployment. Increased stress and conflict in
the home can result from changes in daily routine and financial strain.

4. Community Division
High unemployment rates can cause disunity in a community as people lose their
sense of purpose and identity as a group. This may result in a rise in crime rates and a
fall in the general wellbeing of the community.

5. Health Inequalities
Health disparities and unemployment are related. People who lose their jobs may be
more susceptible to health problems as a result of higher stress levels, a lack of access
to healthcare, and unhealthy coping strategies.

6. Generational Effects
Children in impacted families may experience difficulties in their schooling and
general well-being as a result of long-term unemployment. The cycle of poverty and
social inequality is thus maintained.
Psychological Effects

1. Increased Stress and Anxiety

Stress and anxiety levels are raised by the uncertainty and financial strain that come
with unemployment. It can be extremely difficult to meet basic needs and to cope
with fear of the future.

2. Depression and Mental Health Issues

A significant risk factor for the onset or exacerbation of mental health conditions like
depression is unemployment. There may be feelings of hopelessness and
unworthiness.

3. Loss of self-esteem
A major blow to one's sense of worth and self-esteem can result from losing one's job.
People could experience a loss of purpose and inadequacy feelings.

4. Effects on Cognitive Function

Prolonged stress brought on by unemployment can impair cognitive function,
impairing one's capacity for memory, judgment, and problem-solving.

5. Risk of Suicide
Studies indicate a possible link between joblessness and a higher chance of suicide.
The psychological ramifications of joblessness may result in profound hopelessness
and despair.

6. Coping Mechanisms
Some people may use unhealthy coping strategies, like drug misuse, to manage the
psychological effects of unemployment.

References
1)Pengangguran: Definisi, Punca, Kesan, Kadar (brictly.com)
2)(46) Kesan kesan | nurhidayah isa - Academia.edu
3)Kesan pengangguran terhadap individu, masyarakat dan ekonomi. -
Relevan
4)Apa Saja Dampak Pengangguran Terhadap Individu, Masyarakat, Bisnis
dan Perekonomian? [2023] (cerdasco.com)
5)Cinemas in crisis: A future of uncertainties
(themalaysianreserve.com)