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Unemployment In Vietnam Essay

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Structure of Vietnam’s unemployment 1. Introduction: Unemployment is a controversial social economic issue that all countries has to deal with, and such a developing country like Vietnam is not an exception to this. Labor is one of main inputs in production process and unemployment is synonymous with the waste of resources. Unemployment also impacts to poverty and inequality problems of economic development. Moreover unemployment is one of main factor in determining how healthy an economy is. Therefore, understanding unemployment well, we can easily find causes and control it. 2. Theory: 2.1. Definition and measurement of unemployment: Unemployment is present in every economy and measures how healthy an economy is. Unemployment is the situation …show more content…

In the reference week (7 days before the date of the interview/survey), unemployed group includes those who are not working yet but are preparing to start their own business or get a new job after reference period; or those who are always willing to work but are unable to work due to temporary illness, occupation, bad weather, waiting for the season, and so on. Unemployment in a country is measured by taking the unemployment rate, which is the number of unemployed, expressed as a percentage of the labor force, which is the total number of people who do have jobs and people who are unemployed. 2.2. Types of unemployment: Macroeconomics often divides unemployment into two categories: long-term and short-term unemployment. The term “natural unemployment” refers to the level of unemployment that exists even in the long run. “Cyclical unemployment” represents the deviation of unemployment from its natural rate due to short-term economic fluctuations. 2.2.1. Natural unemployment: There are many reasons in which cause unemployment. Every economy has a “natural unemployment rate” even when the market clears because the demand for labor and supply for labor is in equilibrium. The three “natural unemployment” includes frictional, structural and real wage

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