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
U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers
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.
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.
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.
Unemployment is a macroeconomic factor that is pertinent to an extensive economy at a regional level. Therefore it affects a large population rather than a few select individuals. Unemployment does not only have social costs, but economic costs too. The ILO, International Labour organization, defines unemployment as, ''People of working age, who are without work, but available for work and actively seeking employment.'' Therefore implying that it is a state of an individual looking for a job but not having one. Unemployment is one of the key indicators in determining the economic stability of a country; hence governments, businesses and consumers closely monitor it. There are numerous aspects that might lead to unemployment such as labour market conflicts and recessions in the economy. There are two main types of unemployment, which can be focused on, seasonal and cyclical unemployment. Seasonal unemployment occurs when a person is unemployed or their profession is not in demand during a particular season. On the contrary, cyclical unemployment occurs when there is less demand for goods and services in the market so consequently supply needs to be decreased.
The incidence of this unemployment, which is a measurement of unemployment in different industries and geographical areas. Youth unemployment has reached a distressing level of 13.5 percent, with currently 300,000 persons aged 15-24 being unemployed. Only around 4 percent people over the age of twenty five are unemployed, this is a strong figure and implies that there is job availability for people within this age bracket. Surprisingly however, the rate of unemployment of for people over forty five is slightly less at around 3.6 percent. This lack of employment is more prominent in rural areas of which there are less available jobs, along with those being
As employers have to instigate age discrimination, it affects unemployment of many people, especially teens and young adults as older adults ages 40 and up are protected by law. According to the U.S. Bureau of Labor, as of January 2017, the unemployment rates for teens ages 16-19 are about 15.0%, unemployment rates for adults ages 20-24 are about 8.3%, and unemployment rates for adults ages 25 and over are about 3.9% (U.S. Bureau of Labor Statistics). There clearly is a huge disparity between age groups, but there are many factors why teens and young adults have higher unemployment rates aside from age discrimination. One factor is that teens and young adults ages 16-24 have a hard time finding employment due to their tight schedules in high school and college. “Increases in the traditional college-age population and rising enrollment rates have contributed to the increase in college enrollment.
The first type of unemployment is frictional unemployment. Mankiw (2008) says that frictional unemployment is “unemployment that results because it takes time for the workers to search for the jobs that best suit their tastes and skills” (p. 601). The rate of frictional unemployment will never be zero so the full employment never reached. The new entrants like fresh graduates and re-entrants like housewives will also lead to frictional unemployment. The period of frictional unemployment is determined by the unemployment insurance benefits and the speed of the information (Mouhammed, 2011). According to Arnold (2011), the major cause of frictional unemployment is imperfect information, which means that the lacking of information required in matching a job applicant immediately with a job vacancy. T...
Unemployment refers to a situation where individuals want to work but are unable to find a job, and as a result, labour resources in an economy are not utilised. In March 2016, the unemployment rate within the Australian labour force was 5.6%, however, it slightly increased a year later to 5.8%. Various factors contribute to the unemployment rate’s increase, such as the cyclically weak demand for labour, resulting slow employment growth compared to labour supply. As well as structural influences that affect the efficiency which unemployed workers are matched to vacant jobs .
The rate of unemployment for the 18 – 31 age groups nearly doubles that of the next age group comprised of their senior cohort. According to the U.S. Census Bureau, 63% of the stated young adult age groups were not employed in 2012, with this being the highest percentage in forty years (2012). Most parents have a very strong influence on the course of the career their children choose to follow. Finding employment that will support a household with established debt from college and other growing expenses has proven to be a real challenge.... ...
Lower GDP for the economy also one of the consequences of unemployment in current time. High rate of this issue implies the economy is operating below full capacity and inefficient so that it will lead to lower output and incomes. Because people who are searching for their work usually will spend less in purchasing goods and
One of the most life changing effects of unemployment is the loss of income. Especially if they are a single parent of if they have a large family to support. Having no money means eventually having no food, no clothes, no shelter, and no car. It also prevents one from doing many things and activities, even though their amount of leisure time has increased. One might not have money to go to the movies, play on sports’ teams, or do any other recreational things. Being unemployed for a long enough time leads to a lot of debt. Any money that has been saved ends up getting spent rather quickly with all of today’s living expenses. Twenty thousand dollars may seem like a lot of money to some people, but with no income that money gets spent before you know it.
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...