Bài tập lớn KINH TẾ VĨ MÔ

Theory of economics explain unemployment in different way.Keynesian economists emphasized that weak demand would lead toproductions cut and layoff unemploymentness.. Others point out tha

Bài tập lớn Kinh Tế Vĩ Mô Chủ đề: Unemployment usually changes due to the economic fluctuations Studying the unemployment

trend in the US.

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When we talk about The Macro-Economics, there are a lot of targets relates to it, for example: GDP, CPI, Inflation rate Esspecially, we cannot but talk about the unemployment – one of the most important targets

in the marco-economics We’ll learn about what’s the unemployment and the unemployment trend in US

A Unemployment

1 Measuring of the unemployment

Unemployment, in econimics, is the status of workers who want tofind a job but can’t find jobs Unemployment rate is the percentage ofunemployed peoples in total labor force

The

unemployment is the history of industrializations In rural area, despiteunemployments, partly unemployeds, workings less time in rural area,unemployments aren’t considered serious problems

2 Reason of the unemployment

In human history, unemployment (unemployment) appears only incapitalist society In the early social community, maintaining order in theherd forced all members to contribute labors and to work In Europeanfeudal societies, the transmissions of land gurantees that peoples arealways employed Even in slave societies, slave owner never leave theirpossession idle for long period of time The Marxist-Leninist economy tries

to create job for every individuals, even if it’s bulges of machineries ifnecessary (this can be called partial unemployment or hiddenunemployment but it’s guaranteed worker still earn incomes from labors)

In the capitalist societies, the bosses pursue the ultimate goals ofprofitabilities, on the other hand they aren’t responsible for the dismisssal

of worker, so that they’re willing to accept unemployment, even profitsfrom unemployment Worker who don’t has the resource to produce theirown labor must be employed or unemployment

Theory of economics explain unemployment in different way.Keynesian economists emphasized that weak demand would lead toproductions cut and layoff (unemploymentness) Others point out that thestructural problem affect the labor markets (structural unemployment).Classical and neo-classical economic tend to explain the external marketpressures, such as minimum salaries, taxes, and restriction on employingworker (ordinary unemployment) Some commented that unemploymentwas mainly a voluntary choices Marxism explains unemployment as thereality that keeps businesses profitables and capitalists Different view may

be correct in different way, contributing to a comprehensive views ofunemployment

After 4 years of works, he regret of people for the unemployeduniversity is also evidence Applying the supply-demands priciple to thelabor markets helps to explain the unemployment rate as well as the cost oflabor

Studies by the World Bank in Africa, the Middle East and LatinAmerica indicate that, in developing countries, high unemployment amongwomen’s and young peoples are consequences of the regulations on masterresponsibility labor

3 Classification of the unemployment

• Classical unemployment: is the types of unemployment that relates totype of employments that the actual salaries paid to the personsdoing the jobs are higher than the actual average pay of the labormarkets, which makes labor supply for this work is higher thandemand This type of unemployment is also known as real salarylabor

• Structural unemployment: is the types of temporary unemploymentthat is expected by worker to find the jobs they’re looking for and notfind a jobs

• Cyclical unemployment: unemployment is related to the economiccycles in which the aggregate demands are lower than the totalsupplies leading to the enterprise to decrease productions and reducethe labor hidings This types of unemployment is also calledKeynesian unemployment because Keynes is the proponents ofaggregate demands - aggregate supplys

• Frictional unemployment: is the types of unemployment that workerand tenant is unable to find each other for reason such asgeographical difference, lack of information’s, etc…

• Disguised unemployment: unemployed worker who aren’t properly ornot using their skills This category includes farm workers in theleisure time (sometimes those who are separated into seasonallyunemployed)

• Latent unemployment: is the type of unemployment that isn’treported

4 Impact on the society and economic

 Personal Exchanges:

- Having no jobs means that communications with other worker is limited,wasting times, unable to pay, buying essential item as well as consumingmerchandise The following factor is extremely serious for the personsresponsible for families, debts, medical expense Specific study indicatethat raised unemployment is associated with raised crime rate, suicide rate,and poorer qualities of healths

- From some point of views, worker often must choose low-income job(while finding a suitable jobs) because the benefit of social insurances areonly available to those who have had previous work experiences On thepart of the employers, use unemployment to exert pressures on employees(e.g., not improving the working environments, imposing highproductivities, low wage, limiting opportunity for advancement, etc…)

- The other price of unemployment is, in the absences of financial resourceand social welfares, individual is forced to do job that don’t match theirlevels of competence Therefore, unemployment causes the situation towork under the ability In thirst sense, unemployment benefits are needed

- The disadvantages of losing a job lead to depression, weakening theinfluence of unions, more hard-working workers, accepting lesser salaryand ultimately job protectionism This increases barriers for people whowant to enter the workforce, restrict migration, and restrict internationalcompetition Finally, unemployment will make the balance of laborconditions lean toward employers, raise the price of leaving work, anddecrease the benefits of finding other income opportunities.

 Psychological impact

- The unemployed are easily in the status of being redundant, but theimpact is different between the sexes In women without work, houseworkand childcare can still be accepted as satisfactory substitutions, whereas inmen, family income is closely tied to individual values, self-esteem Menwho lose their jobs are often self-deprecating, very sensitive and irritable,they can look to alcohol and cigarettes to forget their sadness, this situationextends beyond the ability to addiction directly affect health It’s possible

to initiate a new problem that is domestic violence They’re also prone topsychological disturbances such as sadness, insomnia, depression and, asmentioned above, sometimes lead to suicide

 Price to businesses and decreased economic growth

- High unemployment means low GDP (gross domestic product), unusedhuman resources, and the chance to produce more products and services

- Unemployment also means less productions Fall the efficiencies ofproductions by scale

- Unemployment leads to decreased social needs Non-consumermerchandises and service, meager business opportunity, product qualities,and fall price In addition, high unemployment leads to less consumerdemands than when many jobs, so investment opportunity is less.

 Benefit

- The increasing unemployment correlates with inflationary pressures This

is illustrated by the Phillips cruve in economic

- A moderate unemployment rate will help both workers and employers.Workers may find other employment opportunities appropriate to theirneeds, desires and conditions of residence On the part of employers,unemployment helps them find the right workers, increase employeeloyalty So that, to some extent, unemployment leads to increasedproductivity and raised profits

5 Formula for calculating the unemployment rate

 Numerators: Not counting people who don’t try to find a job

 Denominator:

Total number of social workers = Number of people employed +Number of unemployment but actively looking for a job

We can see that the unemployment rate has changed for a number ofreasons, stemming from changes increase the market or the economy Forexample, minimum wage, hiring regulations, employer’s responsibilities, orthe need to change the employment of employees, etc… But ultimately,most fundamental issue is the maintenance of profitability of the business.When changes from the economy emerge with signs of decline, the income

of workers will decreases, from which the macroeconomic demand willdecrease This forced the company to scale down production resultingincrease layoffs of job cuts that led to unemployment In addition, there isanother case where rising labor market prices will limit the expansion ofproduction or employment, resulting in increased unemployment

Although unemployment is a very worrying issue for an economy,especially for developing economies with young population (where there is

a plentiful labor force), it is becoming more and more important, should bemore serious But unemployment has its positive side, especially the rise inunemployment rates is inversely proportional to the rate of inflation.However, for each economy, to ensure stable and long-term development,appropriate policies are needed to balance these two indicators

=> So that, all economic fluctuation affect the change of unemployment,especially the changes related to the change of the macro-demand

B Unemployment trend in the US

We have a lot of data about the unemployment in the US from 2008

to now, it help us know more exactly about the unemployment in the US

1 The US unemployment rate increased sharply from 6.8% in November to7.2% in December 2008, the highest in 16 years The numbers of peopleslaid off in 2008 was 2.6 millions, the highest level since 1945

Companies and corporations cut job in the last four months of 2008,leaving 7.3% of the year’s figure at 1.9 millions

According to the US Labor Department, worker lost their job mainly inthe service sectors, accounting for 80% of the labor forces, with 273thousands peoples, followed by manufacturings (149 thounsand) due to thenegatives impact of the automobile industries, the construction industries(101 thousands), the retail sectors (67 thousand peoples)… Some luckypeoples aren’t fired, decreased labor hour In December 2008, the averagehour worked by US worker decreased by 0.2 hour to 33.3 hour, the lowestsince the indexs began in 1964 The unemployment situations in thecountries has surprised many economists In fact, the unemployment rate

in 2008 was 0.2% higher than economist expected Unemploymentincreases from the economic downturns, on the contrary, unemploymentalso has a negatives impact on the US economy, unemployment rate in theUnited States have increased sharply, as many company and corporationbelieve and prolonged The reasons for this is that leading company andcorporation have alreadyplanned to cut productions in 2009, cuttingexpense to minimize losses To do this, corporate bosses quickly cut jobbecause it was easier and less costly than Europe, which set stricterrequirement for businesses to cut number The numbers of employees, aswell as the agreements on statutory leaves

The rapid rising in unemployment causes many consequences First,this affects the resilience of the economy, continues to weaken “demand”and prolong the recession Unemployment has also made the US housingmarket continue to freeze Many observers predict that after two years offreezing, the housing market won’t be albe to prosper because customersare more hesitant to open their wallets, especially in the real estate sector.

In the 1990s, reducing the unemployment rate contributed to a significantfalling in poverty, especially among ethnic minority and female-headedhouseholds, today in the United States Again the opposite phenomenon

Long-term unemployment increases the risk of Americans decreasinginto poverty, especially when many unemployed workers and workers areunemployed and these numbers are generally only available in the short-term Unemployment is rampant in many sectors and fields in the UnitedStates Starting from the manufacturing sector, unemployment has hit theheaviest construction sector as a result of a decline in real estatetransactions In recent months, service fields, especially retail, have alsobeen hit hard It can be seen that the seasonal employment rate for thepast Christmas was lower than usual To date, unemployment has spread tothe transportation and financial services sectors In sectors, only themedical sector still need workers Based on the indicators ofunemployment, many experts predict this situation may continue to rise in

2009 and 2010 According to experts, unemployment ended at a time whenthere is a close relationship With the recession in the United States, it’ssaid to be the longest in post-war history

President Obama’s administrations has proposed a $800 billionseconomic stimulus packages to create an additional three millions job inthe next two years Much of this supports is used in infrastructure project,such as the improvements of road, bridge, school and hospital Therequestions posed by economist is whether money is able to quickly limitthe increasings in unemployment and the impact of economic stimulus intemporaries? However, in the events that the packages are effective instabilizings the economies by the end of 2009, it’s likely that company andcorporation will plan to recruit staff members and employments market inthe United States will come back.

2 In 2010, data released by the US Department of Labor recently showedthat the number of people caliming unemployment benefits for the firsttime reached 500.000, an rising of 12.000 the week before, the highestsince mid-November is the third consecutive rising A report from the LaborMinistry also said that by the end of July, the number of people requesting

an extension of the benefits and the number of people claiming emergencybenefits incresed to 5.600.000 According to Lianhe Zaobao, USunemployment claims surged to a recor 651.000 last March, then reducedsteadily to 439.000 early Feburary However, after that time this numbercontinued to rise, and caused much worry about the market With theslowdown in US economic growth, the problem of unemployment is likely

to become increasingly urgent