The country wants low rate of unemployment because high unemployment brings some costs in an economy. Firstly, those who are unemployed will not receive any wages, means they face money crisis. Secondly, it can lead to government costs; increase in unemployment means that they need to give unemployed people for some social welfare. On the other hand, tax revenue will decrease because there are less tax payers. The unemployment also causes to increase crime rate, homeless people and poverty.
To some degree these differences remain despite national statistical agencies increasingly adopting the definition of unemployment by the International Labor Organization. To facilitate international comparisons, some organizations, such as the OECD, Eurostat, and International Labor Comparisons Program, adjust data on unemployment for comparability across countries. Though many people care about the number of unemployed individuals, economists typically focus on the unemployment rate. This corrects for the normal increase in the number of people employed due to increases in population and increases in the labour force relative to the population. The unemployment rate is expressed as a percentage, and is calculated as
This data collection should allow this study to acquire an acceptable level of trustworthiness, even when taking into considerations some limitations that may occur. Section 1: Introduction Introduction Unemployment as an economic problem exists in each countries and it is often a measure of the health of the economy. It is known as waste of scarce economic resources and as a result it decreases the future growth potential of the country’s economy (Riley, 2005). It is essential to understand the factors which causes the unemployment and its relation and impacts to other economic issues. For instance, of the causes are considered the extreme unemployment benefits, excessive minimum wage and hiring cost, too high real wages level, the disparity between the unemployed labour and job offers on the market in terms of skills and many others reasons (Bell, 2000).
Introduction: Unemployment occurs when a person who is actively seeking for work is unable to find work. The measurement of unemployment is unemployment rate. Unemployment rate is the percentage of the labour force that is unemployed. Unemployment rate is often use to measure the health of the economy. There are 3 types of unemployment which are frictional, structural and cyclical unemployment.
Unemployment is defined as “people of working age who are without work, available for work, and actively seeking employment.” (www.ilo.org). There are many factors that will affect the unemployment rate such as, exchange rates, costs of raw materials, and international economic conditions (Blink & Dorton). Unemployment is becoming a major threat in many countries. Spain is an example of how unemployment is a big factor of causing the economy to slow down. The rich are getting richer, and the poor poorer.
Unemployment in America can be caused by numerous factors such as the condition of our countries economy, jobs being created overseas due to the cheaper labor costs, and demographics across the country where job surges can occur. The United States government utilizes the rates formed the statistics received by the Bureau of Labor Statistics, in order to determine a rate at which people are unemployed each month. This method consists of The Bureau of Labor Statistics conducting a survey the Current Population Survey. Now, what does the government consider as being unemployed? The Bureau of Labor Statistics currently uses six measurements when calculating unemployment that range from U-1 to U-6, and each looks at various aspects to determine
VI. Employment A. Theories of Employment In economics, full employment refers to an economic condition in which every individual is employed. It signifies the market condition where the demand for labor is equivalent to the supply of labor at every level of real wage. Full employment is the employment level at which every individual who desires to work at the prevalent wage rate gets employed.
Unemployment is universally recognized as a bad thing. While economists and academics make convincing arguments that there is a certain natural level of unemployment that cannot be erased, elevated unemployment imposes significant costs on the individual, the society and the country. Worse yet, most of the costs are of the dead loss variety where there are no offsetting gains to the costs that everyone must bear (Depending on how it 's measured). Unemployment represents the number of people in the work force who want to work but do not have a job. It is generally stated as a percentage and calculated by dividing the number of people who are unemployed by the total work force.
Unemployment is used to measure the health of an economy. The most used measure is the unemployment rate, which is the number of unemployed persons divided by the number of persons in the labor force. While the natural rate of unemployment is figured out by looking at the rate persons are finding jobs, compared with the rate of people quitting their jobs. At any time, people are either employed or unemployed. 2.