Unemployment in Hungary - the Effect of the Economic Crisis

In an economic depression unemployment rates and decrease in the flow of money into the economy. Thorpe Park will find it exceedingly difficult to earn profits. As a result they reduce their staffs that lead to unemployment. But they only hire seasonal staff who only work 9 months of the year so employees will become unemployed at the end of the 9 months every year.

An increase in the unemployment rate means that more individuals do not have an income, thus meaning many households suffer reduced disposable funds. This causes a decrease in the level of aggregate demand within the economy and therefore reduces economic growth. This in turn causes a slower circular flow of income, meaning that households may be forced into or past poverty, as a result of the lowered income generated, reducing the living standards and quality of life. The downturn experienced by the economy can also offset many individuals seeing them not wanting to return back to the workforce due to the lack of jobs available, making them long-term unemployed rather than cyclically unemployed, or if the firm initially was promoting structural change, structurally unemployed. Combined with poverty, the aspect of unemployment can lead to other severe mental health issues and illness reaching extremes.

The unemployment rate has dramatically increased over the last several months. This increase has created many complications for the American people. Although the United States economy has created over 7 million jobs, there is still a long way to go until the economy is back on track.

In 2011, the rate of unemployment is at 9%. Although there is a decline it has been rather slow. Financial analysts predict that unemployment rate would drop to 8%. Even for the people who still have their jobs the hours that they work have been reduced since then. With reduced hours the productivity of the workers would not be fully exploited which in the end, affects the economy. This is so because with a small fiscal base the economy has not been able to recover from recession fast enough. Although there have been positive growths in the employment rates these growths are barely enough. They do little to help in the dire situation. This only means that joblessness is something that the population would have learned to live with.

The second type of unemployment is also one that can be easily grasped by most people. This type of unemployment is frictional unemployment and is defined as, “the unemployment which exists in any economy due

Since the early 2000’s the unemployment rates of the United States have been constantly changing. For most of this time unemployment rates were increasing at a quick pace as the country was dealing with internal financial issues of its own. When people are out of work the rates of depression and crime seem to skyrocket. This is due to the lack of funds coming into a home which result in some less than admirable acts being committed. There are many causes of unemployment and many effects that unemployment can have on not only our economy, but our personal lives as well.

Throughout all of the valiant efforts of Hungarian Students and workers the Hungarian revolution had begun only to see hundreds die and thousands more leave with fatal casualties. The only way the Hungarians could fight back was to take up arms and fight back with as much force as possible and eventually they did succeed only to watch all of their hopes a dreams crushed when the soviets returned to decimate the Hungarian Freedom Fighters within a matter of a few short days. The Soviet Union’s Reign had only ended when the Berlin wall was demolished in 1989 when other countries finally realized that the Communist were also a very large threat to the rest of the world, which bring me to yet another point in history when the same efforts concluded to very fruitful rewards.

Hungary had a head start on the other former communist-bloc countries in terms of adopting economic reform measures

Hungary is located in central Europe, with an approximate population of roughly 10 million people. Its capital is Budapest, the city as well as much of the country,

Hungary was often exploited by the Soviets, who used force to steal goods from Hungarian people and demanded huge amounts of grain, meat, vegetables and dairy products. Hatred spewed throughout Hungary for Russia because they controlled their economy, which caused them to be poor. The turmoil and unrest was beginning to grow from the workers (Ray). A detailed study for the United States Army was prepared several months before the Hungarian uprisings, examines Hungary “as a potential theater for Special Forces operations”. It said, “In international and national politics, in its agricultural policy of collectivization, in its program of industrialization, in its policy of Sovietization, in its persecution of religion, its regimentation of workers and widespread use of forced labor, the Communist regime has completely thwarted Hungarian nationalism and provided all elements of the population with numerous reasons for being dissident” ("Hungary: Resistance Activities and Potentials").Yet, there was still hope for the Hungarians.

However, life has changed, globalization and feminism have had a huge impact on the work environment all around the world. Technology has also made many jobs easier, yet very, very similar. Because of these changes, unemployment has become an issue all around the globe. The government views the unemployment situation as an individual problem.  From the government’s perspective, unemployment is due to the lack of training of the individual.  However, because

Communism is a topic that not many people are aware of, or its impact, especially in a small country like Hungary. Communism did a lot of good things for the country; it helped pull Hungary out of economic disaster after the war; but, it also made living there, for the long run, extremely tough for citizens. But the Soviets, although they rebuilt Hungary (relatively), their main intensions appear more and more selfish as facts come together. The Soviet Union brought help to Hungary in the short term and the long term effects, although not as beneficial, still caused an improvement as communism began to gain

Firstly Cyclical unemployment or demand deficient unemployment is caused by a lack of spending throughout the economy and generally affects all sectors of the economy because spending is falling. To overcome this, the government needs to introduce policies which seek to boost spending throughout the economy. An example would be a loosening of monetary policy and cutting interest rates which make borrowing for individuals and businesses cheaper. They borrow money which is then spent in the economy which

Winding down, you see that Hungary has been through many years of upheaval, rioting, war, and dictators to get where they are at today. Even today, Hungary still sees riots and demonstrations due in part to current political and social problems that still plague the country. However don’t let that scare you! Hungary is still has one of the greatest economies in the EU and can be nearly self-sufficient in producing its own food. I can’t wait to see how a country with such a topsy-turvy past can come out with such full steam

Structural unemployment may occur in the short term with the removal of trade barriers. This will have impact on large numbers of workers, as well as their families and local economies. In growth industries workers often will have difficulties to find employment.