Unemploymentis a state in which population exceeds the number of jobs availablein the market. It is statistically manipulated for comparisonreasons. Unemployment can be either high or low depending on thestate of the economy at that particular time. High unemployment iswhere the economy records a high number of people without jobs whilelow unemployment is where the economy records a low rate of the laborforce without jobs as compared to the other times (Zastrow,2014).This paper shall dig deeper into the boom and recession period of theeconomy.
HighAnd Low Rate Of Unemployment
Duringthe recession period, high unemployment rate is recorded. This meansa high number of jobless people within the working age bracket of 18and 60 years. Gender discrimination also plays a major part onunemployment. During employment a certain gender is favored over theother. People would like to gain full employment given anopportunity. It affects those with knowledge and skills andindirectly those without. A prolonged state of unemployment leads todeteriorating economic state of productivity and weakening of skills(‘Dept, I. M. F. E.’, 2014).
Oneof the causes that have been directly and indirectly linked tounemployment is inflation (Zastrow,2010).Inflation is whereby a country’s economic state is threatenedthrough the falling of the state’s currency or the prices ofproducts going up in that consumers are unable to purchase. There aretwo types of inflation demand pull inflation, which involves toomuch demand than there is supply and the cost push which comes inwhere the production cost goes up, making the goods and servicesbecome too pricey in a way the consumers find it hard to buy.
Lowunemployment season on the other hand is recorded during the boomseason. There’s an increased demand and supply of goods andservices and therefore employment is created. This leads to economicgrowth. Low unemployment is influenced by increase of naturalresources and increased skilled manpower (‘Dept,I. M. F. E.’, 2014).Some people are unemployed because of their lack of knowledge andskill those who manage to get skills in different areas getemployment and thus reduce the number of unemployed population.
Inconclusion, there’s need to reduce unemployment so that the economycan be more productive and forward moving. Low unemployment reducesthe rate of crime and occupies the mind of people positively. Thosewho find it hard to get employment should try venturing in newbusiness ideas. This encourages self-employment and thus bringingbalance between demand and supply reduced inflation.
Eurostat,(2015). Statistics Explained Unemploymentstatistics.Retrieved on 26thMar 2015. From:http://ec.europa.eu/eurostat/statistics-explained/index.php/Unemployment_statistics(Articleused)
Dept,I. M. F. E. (2014). Italy.Washington: International Monetary Fund
Zastrow,C. (2014). Introductionto social work and social welfare: Empowering people.Belmont, CA: Brooks Cole, Cengage Learning.
Zastrow,C. (2010). Introductionto social work and social welfare: Empowering people.Belmont, CA: Brooks/Cole.