Tuesday, April 9, 2019

Economics IA Commentary Coversheet Essay Example for Free

Economics IA Commentary C oversheet EssayNovember 11 2009 The unemployment deem stands at 7.8% up 0.1% over the shit and 2.0% on break year. Nearly 29 one million million million people were in work in the menses July to September according to the lug force survey (LFS). The number of people employed was up by 6,000 this quarter but down by 490,000 on the last year. The working age employment swan is 72.5% down 0.1% on the last quarter and down 1.9% on the last year. ILO-defined unemployment in July to September was 2.46 million (7.9%) up by 30,000 unemployed on April-June and 629,000 from this time last year. The claimant count for key out-of-work benefits was 1.6395 million in October up by 22,900 on last month, and up 632,700 on last year. Earnings growth over the year to August (including bonuses) was 1.6%, down 0.2% from the previous month.Secretary of State for Work and Pensions, Yvette Cooper said The figures attest more people in work and a lot more young pe ople winning up our offer of full time education and training, which is welcome news. The detail that unemployment is significantly lower than everyone gauge at the beginning of the year shows the support for the economy is making a real difference. But we slam things are still tough for a lot of families, and unemployment is expected to increase further next year. Thats wherefore were determined to do more with an extra 35,000 youth businesss, more apprenticeships and education places so we can set about no young person gets stuck in long term unemployment. The figures out straight off also strengthen the fact that the UK press market place is performing better than most major economies.They show UK unemployment at 7.8%, compared to an EU average of 9.2% and lower than 14 other EU countries including France (10.0%), Ireland (13.0%) and Spain (19.3%), as well as the US (10.2%) and Canada (8.6%). Commenting on the in vogue(p) statistics, John Philpott, Chief Economist and Director of Public Policy at the CIPD, said UK unemployment is go on to rise but at a much slower pace than earlier in the year. bit this is not unexpected the fact that the unemployment total remained below 2.5 million in the quarter ending in September is encouraging. However, the relative improvement should not be interpreted as evidence that the bray market is returning to health, with male unemployment and long-term unemployment continuing to rise and youth unemployment now at a eternise rate despite a heft up in the number of young people staying on in education to avoid the dole.Unemployment remained below 2.5 million in the three months to September primarily be display case there was a rise in odd-job(prenominal) employment, temporary employment and contract working, the latter boosting self-employment. This more than offset a continued marked deterioration in full-time jobs for employees. Such a pattern is common in a labour market where over every last(predicate) fill for stave is weak and as the Bank of England reiterated today in its latest quarterly Inflation Report the economic outlook uncertain, with the road to recovery apt(predicate) to be slow. At such times employers who need to recruit remain wary of hiring full-time staff and it is significant that todays ONS figures do not show an improvement in the level of job vacancies.This pattern is also normally accompanied by a high rate of involuntary odd-job(prenominal) working there are now almost 1 million people working part-time because they cant find a full-time job. Women continue to be the main beneficiaries of a labour market where opportunities for part-time employment are increase, while men lose out as full-time jobs are being lost. As a result the CIPD expects the rate of male unemployment to rise well above 10% in 2010, with the proportion of men in work set to spend to a exhibit low.The current pattern of demand for labour is also doing nothing to ease the plight of young people. The latest quarter saw a further bragging(a) fall in the number of under-25s in work, with the unemployment rate for 18-24 year olds now at a record high. There is little consolation in the fact that the number of unemployed young people remained below 1 million. This is explained by a quarterly surge in the number of young people classed as economically inactive, which the ONS figures indicate is mainly referable to more young people staying on at school or college, almost certainly as an alternative to the dole. This article deals with unemployment in the UK.A person can be con perspectivered unemployed when he is involuntarily out of work, however is pull up stakesing to work at current wage rates. One of the governings main goals is to achieve full employment, where all people who are able and willing, are working. This is extremely honorable for the economy because it can be considered working at maximum efficiency, which causes growth and development.A good appearance to illustrate a countries economy taking into account unemployment would be to use a PPF.The production misfortune frontier is the orange line where the economy is working at full efficiency (full employment), using all of its resources. Point X is when the economy is not using all of its resources, and has people unemployed.http//i.investopedia.com/inv/dictionary/terms/ppf.gif geomorphological unemployment is a possible reason for the large decrease of workers. This specific type of unemployment focuses mainly on the divergence of jobs under the condition that the demand for a certain product falls, or there is a flaw of production abroad.In the category of disequilibrium unemployment, Demand deficient (Cyclical) Unemployment is most likely the number one cause for the UKs labour force being downsized. imputable to the global recession, consumers can afford less goods and services, therefore the unite demand decreases significantly (hence the name demand deficient ). If the demand for production has substantially fallen, then naturally the demand for labour will also fall.Demand deficient unemployment can be illustrated using a diagram.Due to the fall in the D of goods and services, demand for labour shifts inwards from D1 to D2. With this, disequilibrium unemployment occurs with the number of workers shifting from Q1 to Q2.When demand for labour is strong, companies dont hesitate to rise wages, although when demand for labour falls, and wages need to be cut, workers will resist wage cuts, therefore it is very hard for the company to cut wages for a large amount of workers without causing some kind disturbance or complications within the firm. If the company does chose to do this, the labour force will become angry and will want to retaliate somehow, perhaps going on strike. Due to a situation like this, parts of the company will not be producing/working, resulting in inefficiency. Aside from that, it will be very hectic, attracting negative attention from consumers and media, which is of course the companys last need.In conclusion, the company will not be in control, when this is in fact their main priority, to obligate the stability and optimal working functionality. That is why the company prefers to downsize workers, and keep themselves running as best and as efficiently as possible. In order to deal with demand deficient unemployment the government should impose fiscalor monetary policies to raise aggregate demand and thus raise the demand for jobs.In the short run, when the AD shifts to the function (from AD1 to AD2) this causes and increase in real GDP (shift from Q1 to Q2 and P1 to P2). If AD would continue to grow in the short run, the rural would reach a maximum supply. This constant struggle for the country to meet AD by increasing output would cause inflation instead of growth. However if the pressure is relatively small in the SR (short run) then it would be much easier to deal with AD in the LR.Supply side policies are government policies designed to increase output, and should also be imposed in order to cope with unemployment.Using a LRAS (long run aggregate supply) diagram is a good way to show the effects of supply side policies.If the Government were to impose supply side policies, the LRAS curve would shift right from LRAS1 LRAS2. The price would then fall from P1 to P2 and the quantity (output + jobs) would increase from Q1 to Q2.Conclusivley the Government should investigate the best strategy to decrease unemployment. By imposing enamor regulations and policies.

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