Introduction: Unemployment generally defined as the number of persons who are willing to work for the current wage rates in society but not employed currently. Unemployment reduces the long run growth potential of the economy. When the situation arises where there are more other resources for the production and no man power leads to wastage of economic resources and lost output of goods and services and this has a great impact on government expenditure directly (Clark, 2003). High unemployment causes less consumption of goods and services and less tax payments results in higher government borrowing requirements. The impact of the unemployment is seen with the individuals and household curtailing the consumption drastically to meet financial
b) Slow Industrial Growth Due to use of backward techniques of production our industrial sector is not at developing form. Its fewer production also creates shortage in market and caused of inflation. c) Increase in Wages & Salaries Present era labours are demanding high wages and salaries. Increment in wages and salaries it might be leads to increase in cost that increases the prices. On the other way due to high wages and salaries there is an increment in income and it reason in inflation.
For example, Mexico has been attributed as a depression to the economy because it was facing a major decline in mining and a shortage in labor during the time when urban population and demand were growing. Uncertainties caused by the rich countries cause losses for the poor countries. Essentially, the poor countries should solve this problem by specializing in production. It can open markets in poor countries, strengthen their method of production and kickoff local businesses. Vincent Ferraro addresses the possible issues which make this policy difficult to follow.
Unemployment is defined as a situation where in a country, citizens who had reach a working age is unable to get employed even though he/she is actively searching for jobs. Unemployment rate is usually used as a measure of the health of the country economy and is measure by the number of unemployed people, divided by the total population of the work force. In general, a country with a lower unemployment rate has a better economy compared to a country with high unemployment rate. When a country faces high unemployment rate, it affects the overall economy, creating a cyclical problem. When people have lesser money to spend because of unemployment, companies suffer from decrease in revenue.
For example, Mexico has been attributed as a depression to the economy because it was facing a major decline in mining and a shortage in labor during the time when urban population and demand were growing. Uncertainties caused by the rich countries cause losses for the poor
This failure had a significant impact also on economic sustainability as measured by the growth of GDP. The stagnation of the aggregate income of middle and lower classes consequent to the increase in inequality and poverty brought about a persisting stagnation of aggregate consumption. Since also the aggregate investment in the
Trade union membership worldwide has been decline due to structural factors that is smaller public sector, smaller manufacturing sector and fewer large firms. The labor market has become more volatile, with workers mobility, part time work, and lastly flexible work arrangements. Moreover, enlightened managements and mobility of capital as well as diversity of work force and workplace have reduced benefits of joining trade unions, impaired trade unions bargaining power and increased the cost of organizing. These developments have adversely affect trade union worldwide. This essay is based on the decline in trade union membership and the advantages and disadvantages of trade unions.
Structural unemployment is an unemployment caused by a gap between the skills demanded by workers and skills that the workers can offer and also caused by fundamental change in an economy and improved by various factors such as technology, competition and government. 8.There are many causes of unemployment in South Africa are lack of formal skills and training, which means people who don’t have appropriate skill for specific job they don’t get jobs. Discrimination based on race, gender, disability and age .Substituting capital for labour, for an example when security is no longer needed because of installed cameras and remote gate. Slow economic growth can also cause unemployment. 9.
On the other hand, international trade is modified in that inflations causes uncertainty that in turns dejects prolific activity, investing, saving and eventually diminishes the competitive factor of a country in international trade. Inflation is known to cause an economic depression which can lead to more adverse effects for example industries can run out of business, and employed people can be rendered jobless (Handley & Kyle,
Unemployment Rate Unemployment is the condition of willing workers lacking jobs or ‘‘gainful employment’’. In economics, unemployment statistics measure the condition and extent of joblessness within an economy. A key measure is the unemployment rate, which is the number of unemployed workers divided by the total civilian labor force. Unemployment is an important issue in developing countries especially in Malaysia. High unemployment means that labour resources are not being used efficiently.