Introduction
Unemployment
(Parkin, 2012) While talking about employment and unemployment the population of a country is divided mainly into 2 parts namely the working age population and the young and institutionalized. Individuals who are 16 years and above and are not in hospitals, Jails or in any form of institutional care come under the working age population.
The Working age group is further subdivided into 2 groups i.e. those who are in the labor force and those who are not in the labor force. The ones not in labor force are those who are not willing to work.
The labor force is further divided into the employed and the unemployed. The unemployed are those who want to work but can’t find any work or job for themselves.
According to (Labour Force Survey, 2014) the number of resident unemployed for the month of March 2014 is 60,600 and this induction of new buses would help in reducing this figure by a margin.
Measurement
(Parkin, 2012) Unemployment can be measured in 3 different ways
1) Unemployment Rate
2) Labor Force Participation Rate
3) Employment to Population Ratio
(Mankiw, 2007) Unemployment Rate, this a percentage of labor force that is unemployed.
Formula
Unemployment Rate= Number of People Unemployed X 100
Labor Force
Below is a graph showing the trend of unemployment rate of Singapore for the month of March from 2002 to 2013. It shows that from 2002 the unemployment rate has been falling at a constant rate but in 2009 it rose to 4.6% due to the global economic crisis, but later fell down and was 2.8% in 2013.
Source of Data: (Labour Force Survey, 2014) Singapore Department of Statistics Singapore, MOM (Ministr...
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...l Unemployment, It occurs due to change in demand of goods due to change in seasons. Example in winter season ice-cream manufacturing employees may be unemployed for the winter months.
4) (Parkin, 2012) Cyclical Unemployment, it occurs when there is a change in the business cycle of an economy from boom to recession, the people who are unemployed due to this change fall under cyclical unemployment.
Cost of Unemployment
(Rudinger Dornbusch, 2001) Unemployment would cause unemployed people to lose their income and social problems. If the duration of unemployment is long the firms would have loss of output and human capital.
The cost of cyclical unemployment According to Okun’s law states that “The economy loses about 2% of output for each 1% that the unemployment rate exceeds the natural rate”
Conclusion
There are three major types of unemployment which are structural, frictional, and cyclical. All three categories explain the many reasons why a person might be out of work in an economic system.
According to Trading Economics, the unemployment rate has grown from 6.6 percent in January 2015 to 7.2 percent in January 2016. In Dinner Party Economic it explains the relationship between inflation and cyclical unemployment and how both topics never occur at the same time, “We don’t see inflation and cyclical unemployment occurring at the same time, which is why economists often talk about the unemployment and inflation as a trade-off”,
Therefore, the individuals outside the group of being young to middle-aged are oppressed due to the converse of the reasons listed above. Some of the reasons listed are tied to one another such as being technologically literate with not needing constant medical attention and being open-minded in conditions like the work force. Those outside the group, such as the elderly, are faced with oppression here. Although, “the U.S. Bureau of Labor Statistics estimates that the number of workers fifty-five years and older is expected to increase by 47% during the period from 2006 to 2016” (Han & Richardson, 2015), they would eventually feel marginalized. People who are older than fifty-five are denied opportunities to participate in the work force because of their age.
Ejim, Esther, and Kaci Lane Hindman. "What Is the Relationship between GDP and Unemployment Rates?" WiseGEEK. Conjecture Corporation, 13 June 2017. Web. 04 July 2017.
The labor force of a population is involved with the people who are employed and unemployed. The Inte...
In 1997, thirty percent of workers were employed in non-standard work arrangements ("HomelessnessÉ"). These consist of independent contracting, working for temporary help agencies, day labor and regular part-time employment. This type of work typically offers lower wages, fewer benefits and less job security. The underemployment rate stands substantially higher than the unemployment rate. Measures of underemployment reflect not only individuals who are unemployed, but also involuntary part-timers that want to work full-time.
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Youth unemployment is a global problem facing both developed and developing economies. The United Nations define youth unemployment as individuals between the age of 15 and 24 years not employed and actively seeking employment. Statistics only consider youths who have attained the required age of employment who are willing and able to work but without jobs. Unemployment rates raise concerns in all economies. However, the rate and trends vary from one country to another irrespective of the country’s development status. For instance, in Cuba, Sierra Leone and Germany, youth unemployment rates were below 10% as per the year (Petersen & Mortimer, 2011). Sierra Leone is a developing country while Germany is a developed country yet their youth unemployment rates are comparable. On the other hand, youth unemployment rates in South Africa, Armenia and Spain were above 50% as per the year 2010 (Petersen & Mortimer, 2011). In most countries, youth unemployment rate is more than double as compared to an unemployment rate in people above the age of 24 years. Canada is not an exemption as the youth unemployment rate is raising major concerns. In the recent years, issues of youth unemployment have dominated political debates and social forums. More and more youths are leaving institutions of higher learning to end up being jobless. A considerable proportion of the youths are doing jobs that are below their level of educations. Organizations are raising standards in jobs where jobs previously performed by high school leavers are being given to diploma and degree holders. Since 1966, general unemployment rate has averaged at 7.75%. As per April this year, the unemployment rate among the youths was 14.5%, w...