Premium Essay

Macroeconmics in Unemployment

In: Business and Management

Submitted By kgautier
Words 3407
Pages 14
Macroeconomics in Unemployment
Kimberly G
Business, Government & the International Economy
January 23, 2013 Abstract
Macroeconomics in Unemployment
With the economy struggling unemployment is a term that we have come to hear far too often over the past several years. Everywhere you turn millions of people are struggling to find some type of work. Those that are jobless find often themselves losing their sense of self respect, purpose, and income. Many of them will have their homes and cars repossessed. Sadly enough it is not just the individuals themselves that are hurt, their families also struggle along with them. Many people in today’s society think that unemployment does not affect them. The sad truth is that unemployment affects everyone on several different levels. The government is affect by benefit to be paid out and loss of tax earnings, businesses are affected by less spending, the unemployed face loss of ability to survive, and in general every working individual has to pick up the expenses through their taxes (McClelland & Macdonald, 1998).
What is Unemployment and The Causes
To understand how unemployment affects society one must first understand what defines a person as being truly unemployed. Unemployment is defined as when individuals do not have a job and they are able, willing, and seeking some form of work (Tucker, 2001). Not everyone that does not have a job is included in the unemployment numbers. Some of these people include full time students, retired people, and the disabled, and those that are not actively seeking work. Then there is the discourage worker. These are people that want to work and were once seeking employment but have all but given up. Most of these workers will end up having to get help from family, friends, charities, and public welfare to survive (Tucker, 2001). Thus this makes it hard to place a true number on…...

Similar Documents

Premium Essay

Unemployment

...One of the most important social problems faced by any person is unemployment. Unemployment may lead to loss of self-esteem, depression, and chronic worry about how to provide for dependents. Underemployment is when a person is either not actually out of a job, but due to need for money, has taken a job which does not allow him (her) to take care of the people and housing as it was done before. It also may include joblessness when people give up on looking for a job. Both situations can be stressful and lead to serious emotional and physical illness. It is not only the loss of income… but also represents loss of control over what may happen in the future to their home and family. A parent no longer able to supply children with what they and most of their friends have had in the past may develop a sense of failure or shame. Unemployment (also underemployment) is a serious social problem, especially since most of those experiencing unemployment are dealing with something that was lost through no fault of their own and reversal of it is also out of their control. The amount of people unemployed is expressed as a percent of the total work force, and has been regarded as a marker for how the economy is doing in general. Calculation of the rate of REAL UNEMPLOYMENT (the unemployed and the underemployed and those who have given up) is actually much higher. While there is no agreement on any one cause of the great depression of 1929, it is generally noted the final blow to the......

Words: 1028 - Pages: 5

Premium Essay

Unemployment

...New York unemployment rates are relatively high. People are trying to analyze the causes of this situation and explain reasons of unemployment in the United States. In the article “U.S.G. and P.T.A.” by Thomas L. Friedman, the author is discussing unemployment as a major society problem. He highlights three main problems, which foster unemployment: increase in global competition mainly because of globalization, fast-growing technology, which eliminates low-skilled workers from the job market and low American educational grades compared to other countries. In the article “Digging Deeper Into What Caused Job Losses” by Casey B. Mulligan the author argues that unemployment was not caused by credit-crunch or demand-based theories. He gives arguments why those theories are not accurate which indirectly approve and agree with the first article. Unemployment in The United States caused by global competition, fast-growing technology and lack of qualitative education and not caused by credit-crunch or product demands. The first deep problem fostering unemployment is global competition. “And as the education systems of China, India, Singapore, Poland and Vietnam continue to improve, and more of their cream rises to the top and more of their young people apply to ivy League schools, it is only going to get more competitive for American men and women at every school”. The author states that it is become really hard to compete with other countries, because their growing education. He......

Words: 557 - Pages: 3

Premium Essay

Unemployment

...Reducing Unemployment and Underemployment in the United States Name Institutional Affiliation Reducing Unemployment and Underemployment in the United States Reducing Unemployment Unemployment and underemployment are one of the main economic concern in many countries or states in the world today. It is a biting problem in many economies and governments are always seeking a new way of solving this problem (Miller, 2011). According to the Bureau of Labor Statistics, unemployment is a situation where a person does not have a job, but have actively searched in the past four weeks (Clague, 2009). It also includes people who have been laid off for than seven days. There are many reasons why people end up being unemployed. Understanding the reasons for unemployment is essential in coming up with a solution to the high rate of unemployment in the United States. The most important causes of unemployment are structural, cyclical and seasonal unemployment (Borts, 2010). The United States has experienced approximately 11 recessions since 1948 when the postwar ended. The different government regimes have tried various methods over the years to turn around recessions and reduce the high rates of unemployment. Some government regimes have embarked on tax while others have embarked on stimulus spending. Unemployment rate in America remained high at 7.6 % in June 2013 (Clague, 2009). The Bureau of Labor Statists reports on all matters relating to unemployment in the United States. In......

Words: 1750 - Pages: 7

Premium Essay

Unemployment

...TermPaperWarehouse.com - Free Term Papers, Essays and Research Documents The Research Paper Factory JoinSearchBrowseSaved Papers Home Page » Social Issues Unemployment Among Fresh Graduates In: Social Issues Unemployment Among Fresh Graduates Topic : Identify the effects of unemployment among the fresh graduates in Malaysia. Problem statement Unemployment has been a serious problem facing in our country especially among the fresh graduates. By some estimation, the increase of Malaysian populations within last one decade causes the increased amount of Malaysian labour force. This may results to the in unemployment that considered as damaging issue to the national economy because high unemployment may reduce the aggregate income and give the negative impact on the government. It will slow down the economic development progress of Malaysia. Other factor that affects labour market is technology, when technology rises, the labour market will drop. Thus, many people loss job because of new technology arise, completely for fresh graduates that seeking their job could not get the opportunity and will turn to increasing in unemployment. The best solution to overcome this problem can be implementing the set of mind to be more creative and innovative person rather than depending to the job that provided by government or private sectors such as create their own business as well as be an entrepreneur. Other than that, the problem can be settled by not too......

Words: 337 - Pages: 2

Premium Essay

Unemployment

...Topic : Identify the effects of unemployment among the fresh graduates in Malaysia. Problem statement Unemployment has been a serious problem facing in our country especially among the fresh graduates. By some estimation, the increase of Malaysian populations within last one decade causes the increased amount of Malaysian labour force. This may results to the in unemployment that considered as damaging issue to the national economy because high unemployment may reduce the aggregate income and give the negative impact on the government. It will slow down the economic development progress of Malaysia. Other factor that affects labour market is technology, when technology rises, the labour market will drop. Thus, many people loss job because of new technology arise, completely for fresh graduates that seeking their job could not get the opportunity and will turn to increasing in unemployment. The best solution to overcome this problem can be implementing the set of mind to be more creative and innovative person rather than depending to the job that provided by government or private sectors such as create their own business as well as be an entrepreneur. Other than that, the problem can be settled by not too choosy in making decision to get a job, even it is not related to the qualification but must consider as started from below is much better. The purposes of this study are: 1. To investigates the effects of unemployment among fresh graduates. 2. To......

Words: 306 - Pages: 2

Premium Essay

Unemployment

...Unemployment in Bosnia and Herzegovina has reached a not so enviable level of 57 % . At the beginning of the year 2013 the records of employment were registered at 553,501 unemployed . Every month, the number of unemployed persons increased by 0.89 %. The fact that I have to mention is that the unemployment rate (official unemployment rate) in Greece is 22 % , which is struggling with the recession . One of the devastating fact is that 262,996 unemployed people or 49.93 % of job seekers are women. Is sexism in question? A fear that we may have a woman who will take a job, be a leader ? Additionally, highest unemployment rate is among young people and it is at 67 %, which is as much as 9 % more than in the previous five years. I think that the particularly troubling fact is that every year it is recorded only a continuation of the negative trend when it comes to the position of young people who are getting worse, and the problems are only deeper. The high rate and the level of youth unemployment has lasting negative consequences for the economy. Young people are choosing to leave Bosnia and Herzegovina every year. Statistics show that 37% of young people will leave Bosnia and Herzegovina, while 10 % have already taken concrete steps to leave out country. On step to hunger is 60 % of the BiH population. With the current level of economic activity, I think that there will be no improvement in the situation until the year 2017. This is leading to additional pressure, especially...

Words: 311 - Pages: 2

Premium Essay

Fundamentals of Macroeconmics

...Ilokwu Fundamentals of Macroeconomics Paper Covered in this paper is the explanation of fundamental terms used in macroeconomics and the analysis of the resulting affects different economic activities impose upon government, households, and business. Prior to diving the dissection of jargon and investigating the influence of activity, a basic definition of macroeconomics is beneficial. Colander (2010) writes, “Macroeconomics is the study of the economy as a whole. It considers the problems of inflation, unemployment, business cycles, and growth” (pg. 15). Now that a basic meaning has been provided, six key terms used in macroeconomics are detailed below. Key Terms Used in the World of Macroeconomics There exists many important nomenclatures used within the study and application of macroeconomics. This section explains six basic components that are essential in beginning to understand macroeconomics. Gross Domestic Product (GDP), Real GDP, Nominal GDP, Unemployment Rate, Inflation Rate, and Interest Rate are covered. Gross Domestic Product (GDP) The juggernaut known as Gross Domestic Product (GDP) refers to the financial appraisal relative to the total spectrum of completed goods and work performed inside a country, during a specified period of time (Investopedia, 2014). An annual computation is most common. The calculated GDP is a monetary picture of the total private consumption, public consumption, government outlays, investments, and the difference of......

Words: 971 - Pages: 4

Premium Essay

Unemployment

...Unemployment occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently cited measure of unemployment is the unemployment rate. This is the number of unemployed persons divided by the number of people in the labor force. Many different variations of the unemployment rate exist with different definitions concerning who is an "unemployed person" and who is in the "labor force." For example, the U.S. Bureau of Labor Statistics' commonly cites the "U-3" unemployment rate as the official unemployment rate but this definition of unemployment does not include unemployed workers who have become discouraged by a tough labor market and are no longer looking for work. The various schools of economic thought differ on their explanation of the cause of unemployment. Keynesian economics proposes that there is a "natural rate" of unemployment because the skills of laborers and the positions available are slightly out of sync even under the best economic conditions. Neoclassical economics postulates that the labor market is efficient if left alone, but that various interventions, such a minimum wage laws and unionization, put supply and demand out of balance. The nature of unemployment differs according to the level of economic development in a country. India is an underdeveloped economy. The following types of unemployment exist in India: 1. Rural Unemployment: India is...

Words: 700 - Pages: 3

Premium Essay

Unemployment

...also had a negative impact. “the rate of unemployment or underemployment was highest for teens (aged 16-19) who were African American (60%) or Hispanic(52%) compared to their White counterparts (35%” (Youth Employment Matters, 3). When you look at these statistics, you may wonder how or why these numbers are so drastically different. Well I feel as though the real problem isn’t getting job, so much as it is the youth being malinformed. I mean most peers assume that just saying and attempting to get a job will get them said job. Well that really isn’t going to happen is it? and i’m sure it won’t help bring the numbers of unemployment for black and hispanic youth down either. Because i’m black youth myself, I see the differences in the African Americans and Hispanics that actually have jobs and those that don’t. The ones that usually have some type of family structured support, tend to have an easier time accessing information or getting help on Wegner 2 how to prepare for a job interview or how to have proper work etiquette. The youth that doesn’t have jobs are typically the one’s who are unmotivated and see “no purpose in wasting one's life away with job”(Tyler Wegner, Conversation with my parents). well they most likely weren’t introduced to the idea of working or going to school for higher education until they were much older and set in there unproductive ways. I believe if we are ever to truly separate this gap of unemployment it will start at school and at a much......

Words: 550 - Pages: 3

Premium Essay

Unemployment

...------------------------------------------------- M5A1: GDP, Unemployment and Inflation [Document subtitle] November 20, 2015 November 20, 2015 If the government guarantees income to those who are unemployed I think it could lower the unemployment rate. The individuals that currently receive unemployment benefits are counted in the unemployment rate. Those people are able to work and they are actively seeking employment. If the government guaranteed an income, the people that don’t really want to work would stop looking for a job which would drop them from the labor force. If they are not part of the labor force then they are not counted in the unemployment rate. I don’t think a cost of living adjustment should apply for those that are unemployed. If the government income is not enough to support the individual or a family that person would only need to earn enough to supplement the support. That means they could take an important but lower paying job which are usually much easier to find and don’t require an extensive skill set. Okun’s Law says that each additional percentage of unemployment translates into a loss of 3 percent in real output, that number was adjusted to 2 percent due to the change in the labor force (Schiller, 2013). The labor force will continue to grow each year and with less people looking for jobs those that want to work should be able to find employment. A guaranteed ...

Words: 257 - Pages: 2

Premium Essay

Unemployment

...Unit 2 Macro: Reducing Unemployment after a Recession Monday, July 11, 2011 by Geoff Riley [pic] How quickly do people find new work after they have been made redundant and experienced a period of unemployment? According to new research published in the May 2011 edition of the Economic Journal, only around one person in every ten unemployed in Britain finds fresh work within a month and nearly half of the extra unemployed created in the wake of an economic shock such as the fallout from the global financial crisis are still without a new job after six months. If government economic policies and the labour market generally are failing to get people back into paid jobs the impact of a recession on unemployment rates can last for a substantial time period bringing with it increased economic and social costs. [pic] According to the research, in the 2008-09 recession UK unemployment rose by over 850,000: from 1.6 to 2.5 million. Although this increase was less than many had feared on the basis of past recessions and the severe 6% drop in UK output, the end of recession has not brought a significant fall in unemployment. Instead, the unemployment rate has continued to fluctuate between 7.9% and 8.2%, having risen from a pre-recession low of 5.2% in April 2008 and standing at 7.8% as of February 2011. [pic] Some economists argue that government policy in the short term should focus on preventing widespread extra unemployment in the first place - for example subsidies for...

Words: 492 - Pages: 2

Free Essay

Unemployment

...solutions for the unemployment problem using Keynesian economics, which brought the idea of forcing the government to spend when the private sector cannot or not able to support adequate levels of economic expansion. Conservatism and its position On the other hand, conservatism which is a political and social philosophy that simply believes that there is something in life worth redeeming and they also think that the role if governments should be to provide the citizens the freedom they need to achieve their own goals. Conservatives in the United States believe in and support the free market solutions, and they suggest to reduce the government rules and restriction of the private job areas. Moreover, they do not agree with the government in terms of motivation spending or aiding. They want it to be a free market that can govern feat and failure. To do so, they suggested to reduce the income tax rate which is the main effect on the free market. Back in the 19th century, the conservatives have worked to stop the labour unions and tried to push the free trade by encouraging agreements. Some of these agreements are still valid and used by the party to support the free trade. They also demonstrated some agreement that reduces inflation. Political and economic issues facing the citizens based on poll data Most of the rich and wealthy citizens of the United States do not support the active side of the government that try to kill the high rates of unemployment, they......

Words: 758 - Pages: 4

Free Essay

Current Macroeconmics

...of Current Macroeconomic Situations Professor J.Kessio December 7, 2011 Analysis of Boeing and Bombardier according to their Stock performance, current and future sales revenue, current and future profits, and labor costs and hiring decisions. I. Introduction In December 2007 the united state of America entered a recession and 1.2 million employees lost their jobs by the end of first 10 months of 2008, many businesses start going out of the market leaving many people without jobs relying on the unemployment compensation. The impact of the recession wasn’t just on U.S economy but it was spread all over the world due the heavy financial relationships and exchange with the potential markets all across the world. The monopolist firms had effected also but not as much as the other firms did but they also faced a hard times. 1.1 The Current Economic Conditions The current economic conditions are picking up due to the fall in unemployment rate by 0.4 percentage point to 8.6% in November 2011 comparing with 9.3% in 2009 and 9.6% in 2010, also the interest rate currently is 0.75%. The GDP growth was -6.8% by the beginning of 2009 and 5% by the beginning of 2010 and 3.1% by the beginning of 2011, overall the economy performance is going in positive direction that will increase consumer and businesses confidence. 1.2 The Firm The firms chosen to be analyze are Boeing and Bombardier because they hold many of the monopoly characteristics such as......

Words: 1118 - Pages: 5

Premium Essay

Unemployment

...Today, a global recession has become a biggest threat to world. Due to this global recession, it is a macroeconomics crisis. In last few years, unemployment has become a serious and top most problem in many part of the world. Also increased globalizations have put more employee job into risk. The under developing countries like India, china are facing their bad time. Emerging economies like China and India are affected by the negative influence of the US Subprime Market Crisis. By reducing the demand for labor we can bring economic downturn, but it tends to increase the unemployment level in the formal sector and bring the wages charge down. It means the poverty rate is increasing and as well as the unemployment is also increases at the same rate. Such both effects try to tend the unemployment and poverty in formal economics. Thus recession works into two ways, directly or indirectly. Directly, in this scenario it decreases the wages of employees and it creates more jobless Is this essay helpful? Join OPPapers to read more and access more than 600,000 just like it! get better grades employees it means more number of poor in formal economy. In directly in this scenario it brings wages down those already employed in formal economy. In other word when the economy is passing through in a recession scenario the GDP rate will be high. The goods, service and product demand would be low. When demand of the product would be low the consumer expenditure also will be low. When......

Words: 363 - Pages: 2

Premium Essay

Unemployment

...Unemployment Name: Institution: Date: Unemployment refers to the situation which occurs when individuals who are actively seeking jobs are unable to find them (Brophy, 2010). On the other hand, unemployment rate refers to the prevalence of unemployment. Unemployment is normally used as a measure of the state of the economy. Before the industrial revolution in the United States, the production of goods was not systemized. Peasants produced goods for their own benefit and for that of their landlords. For this reason, they were not paid and could not be employed or unemployed. There was therefore no unemployment. However, the industrial revolution began which required the employment system (Maddison, 1982). Because of the search for cheap labor, industrial revolution brought about labor exploitation and unemployment. Unemployment in the United States started in the year 2008 when the private sector fell into a depression. This was as a result of the global recession. Since then, Unemployment has been an issue to date (Brophy, 2010). Unemployment is considered to be the main cause of poverty. As a result, people may not afford necessities which in turn lead to various businesses performing poorly. This in turn causes the laying off of more people and this becomes a chain reaction. Unemployment is also a problem because it the unemployed may not afford to pay bills thus lowering their standard of living. Furthermore, the number of homeless people in the United States has...

Words: 920 - Pages: 4