Essay Title: 

World Bank

April 3, 2016 | Author: | Posted in economics, mathematics and economics


Running Head : World Bank


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World Bank

Unemployment and the Economy

I .1 . Causes of Unemployment

Unemployment has been one of the most feared economic problems by government leaders and business investors . Unemployment is also a symbol of economic performance for all nations in the world . Low rate of employment means that the economy has the ability to sustain its members . On the other hand , high rate of unemployment has also become the symbol that the government within that economy [banner_entry_middle]

is not doing what it supposed to

There are several kinds of unemployment : people who are between jobs people who had skills that are unsuitable with the needs of the society and people who cannot get jobs because the economy is in an overall bad shape . Unemployment is caused by several conditions , one of them is poor economic conditions caused by lack of education , continuing war and political debacle , non-existence of valuable commodity or skill , over populated regions , etc . These types of unemployment are generally the hardest to deal with because the government has to deal with various other dreadful issues also (`Measuring , 2007

Other causes are mismanagement of the economy , includes : minimum wage laws , overpowering labor unions , lead time to search for jobs , etc Under minimum wage laws , companies have no choice but to pay employees and workers a sufficient compensation to meet the requirements of the laws . For companies who have not the ability to meet such requirement the laws force them to lay off some workers as a way to fulfill their regulated responsibility . Similarly , countries with overpowering labor unions can also experience increasing unemployment rate . AS the labor unions force management to increase their compensation , the managers who are forced to meet the demands have no other means to save the company but to lay-off workers (Measuring , 2007

I .2 . How Unemployment affects the economy

Generally , people all over the world rely on their jobs to generate sufficient income to support their standard of living . Without jobs that could supply people with sufficient earnings , their standard of living will lessen and finally drop below the lines of poverty

Using a wider perspective , unemployment could hurt the entire economy because it means that people are using more products and services within their daily lives compare to what they produce . In other words , people are using more money and resources compare to what they can reproduce themselves , which could dangerously lead to more unemployment in the future . In terms of real economic measurements , high unemployment indicated low GDP performance . This is true because high unemployment means that human resources are not used in the optimum manner , creating inefficiencies within the economy (Measuring , 2007

Liberia and Kiribati : The Unemployed Nation

In this , we are discussing the two countries that have the highest unemployment rates in the world , Liberia and Kiribati

II .1 . Liberia

According to the CIA World Factbook , Liberia is the country which has the highest recorded employment rate , which… [banner_entry_footer]


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