A Brief Note On Unemployment And Its Impact On The Economy

958 WordsMar 1, 20164 Pages
I. Introduction Unemployment is a global issue considering its overall impact on the economy. The main purpose of the analysis is to identify and analyze the causes and effects of unemployment in the global economy and provide possible solutions for it. By definition, unemployment occurs when a person who is actively searching for employment is unable to find work. It is often used as a measure of the health of the economy. The most common measure of unemployment is the unemployment rate. II. Key Terminology Unemployment Rate - It is calculated as a percentage by dividing the number of unemployed persons by the number of people currently in the labor force. Global Economy – It refers to the economy of the world, comprising different economies of individual economies, with each economy related with the other in one way or another. III. Facts The following highlights the main facts related to unemployment and its impact on global economy: • Increase in Population – This factor leads to higher unemployment rates, as the number of people who are looking for jobs is increasing, it becomes more difficult to accommodate jobs for all these number of workers. This results to increase in demand for work than the available occupations. This situation will continue as long as there is an existence of supply-demand gap for countries. China’s unemployment rate is 4.10 and has been stable over the years after the government implemented “one-child” policy. • Fall in
Open Document