Presentation 1 Ali
-
Upload
khanshahbazali -
Category
Documents
-
view
212 -
download
0
Transcript of Presentation 1 Ali
-
8/9/2019 Presentation 1 Ali
1/25
-
8/9/2019 Presentation 1 Ali
2/25
-
8/9/2019 Presentation 1 Ali
3/25
-
8/9/2019 Presentation 1 Ali
4/25
ROLL # 352ROLL # 352
-
8/9/2019 Presentation 1 Ali
5/25
UNEMPLOYMENT
A situation where some people are willingand able to work but are not able tofind paid employment. Those who are of
working age but not in the labor forcemight be retired , spouses working inthe home, student, are people who wouldlike work but have given up looking. Wewill concentrate on that part of thatlabor force that is unemployed.
-
8/9/2019 Presentation 1 Ali
6/25
-
8/9/2019 Presentation 1 Ali
7/25
The unemployed are
those who are aged 15 and over
were not employed during the survey
week had actively looked for full- or part-
time work advertisements, checkingCentre link notice boards) at any time in
the 4 weeks up to the end of the survey week.
-
8/9/2019 Presentation 1 Ali
8/25
available for work in the survey week, orwould have been available except fortemporary lines.
waiting to start a new job within 4 weeksfrom the end of the surveyweekend wouldhave started in the survey week if the job
had been available then waiting to be called back to a job fromwhich they had been stood down with out
pay for less then four weeks up to theend of the survey week for reasons otherthan bad weather and plant break down.
-
8/9/2019 Presentation 1 Ali
9/25
-
8/9/2019 Presentation 1 Ali
10/25
Types of unemployment Cyclical non-cyclical
long-term unemployment
-
8/9/2019 Presentation 1 Ali
11/25
Cyclical
Cyclical unemployment is caused by adeficiency in the level of aggregatedemand. It happens because of thenormal fluctuations that occur in thebusiness cycle over time. Therefore,it can be identified in the
'contraction' and 'trough' phases ofthe business cycle.
-
8/9/2019 Presentation 1 Ali
12/25
-
8/9/2019 Presentation 1 Ali
13/25
Structural unemployment ) is caused by .adjustment in the industrialstructure of the economy. Changes indemand for some types of goods causesome factories to reduce their productionand put off labour. Developments intechnology increase the demand for
certain types of skilled labour, while someof the unskilled lose their job.
-
8/9/2019 Presentation 1 Ali
14/25
Frictional unemployment Frictional unemployment is so namedbecause it results from lags or frictions inthe price mechanism which slows down
adjustment in the labour market. Mostfrictional unemployment temporary andincludes people who are in the process ofchanging jobs, those in seasonaloccupations and school leavers looking for
their first job. Even when there is fullemployment.
-
8/9/2019 Presentation 1 Ali
15/25
Seasonal unemployment Seasonal unemployment results fromthe seasonal nature of production in
some commodities, particularly in anumber of areas of primaryproduction such as sheep shearingand fruit picking.
-
8/9/2019 Presentation 1 Ali
16/25
long-term unemployment
Some members of society are essentiallyunemployable. Such people may have become
unemployed for cyclical or non-cyclical reasons, or
may never have worked since leaving school. Theyremain in theunemployment pool because they arethe people least suited to unemployement lack ofeducation, poor physical or mental abilities, ornegative
attitude to work.
-
8/9/2019 Presentation 1 Ali
17/25
Underemployment Underemployment occurs when peoplewho have part-time jobs would prefer
to work more.
-
8/9/2019 Presentation 1 Ali
18/25
Hidden unemployment of Official unemployment statistics tend to exclude a largenumber people who are willing to work but are not activelyseeking employment. As mentioned above, these peoplecould be classified as the 'hidden unemployed'. Becausethey are not actively seeking employment, mainly because of
the depressed state of the labour market, or the lack ofadequate facilities or services (e.g. affordable child care),they are not included as part of the labour force.ABSinformationshowed that in the early 1990s more than
700 000 people were in this category which wasalmost as many as those officially recognised as beingunemployed.
-
8/9/2019 Presentation 1 Ali
19/25
Measuring unemployment Direct Measures Indirect measures
-
8/9/2019 Presentation 1 Ali
20/25
Direct Measures
U = L F - J
UR = U / LF x 100
U is the number of unemployed people
UR is the unemployment rate LF is the size of the labour force
] is the number of people in jobs (employed persons).
-
8/9/2019 Presentation 1 Ali
21/25
Indirect measures LFPRis the labour force participation rate . J is the number of people in jobs
(employed persons) . PLWis the number of persons looking forfull-time and part-time work
. CVI5+is number of the civilian population
aged 15 and over.
-
8/9/2019 Presentation 1 Ali
22/25
. Causes of
unemployment According to Keynes, unemployment isfundamentally caused by lower than optimum
aggregate demand. With a lower demand for
goods and services, businesses require less staffto satisty that demand. This can have the effectof reducing demand even more, as unemployedpeople do not spend as much as employed people.Private investment will decline as well.Obviously,
this cause is generally referred to as so-calledcyclical unemployment.s
-
8/9/2019 Presentation 1 Ali
23/25
Explanations for
structural unemployment There are two standard economic explanations forstructural unemployment. As explained
above, structural unemployment is mainly due to
fundamental changes in the structure of labour demand-specifically, the kind of jobs thatthe economy offers. Technological change thedevelopment of new industries and the demise ofold ones, globalisation and geographic shift in
manufacturing, all create new kinds of jobs andcause many old ones to disappear
-
8/9/2019 Presentation 1 Ali
24/25
The Phillips curve: foliowing pioneering empirical work in the late 1950s, aBritish economist, A.W. Phillips,Identified an inversestatistical relationship between the unemployment rate andthe rate of inflation; that is,high rates of inflation areaccompanied by low rates of unemployment, and vice versa.
The graphical representation of this relationship is knownas the Phillips curve.figure 18.4(a)shows what the expectedrelationship should look like. Figure 18.4(b) shows therelationship between the two economic indicators for the1961 to 1969 period. The line generalising on the dataportrays the expected inverse relationship.
-
8/9/2019 Presentation 1 Ali
25/25