UWC in Mostar

Academic year 2007 / 2008

ECONOMICSStandard Level – Second Year

Azra Bajramović

MACROECONOMICS Unemployment

Losing job, according to one study, is one of the most stresfull things in life (just after death of spouse and going to prison).

MACROECONOMICS Unemployment

Employees - those who do any kind of payed job but also those who have a job but are absent temporarily due to illness, maternity leave etc.

Unemployed - not working but actively seeking job

Out of working force - those who do not look for job or to ill to work

MACROECONOMICS Unemployment

International Labour Organization (ILO) definitions: Employees: people who regard themselves as paid employees. People with two or more jobs are counted only once.Self-employed: people who regard themselves as self-employed, that is, who in their main employment work on their own account, whether or not they have employees. In employment: employees, self-employed and participants in government training schemes and people doing unpaid family work. Unemployed: those who are without a job, are available to start work in the next two weeks, who want a job and have been seeking a job in the last four weeks or are waiting to start a job already obtained. Labour Force also defined as economically active: those in employment plus ILO unemployed. Economically inactive: people who are neither in employment or unemployment. This includes those looking after a home or retired or permanently unable to work.

MACROECONOMICS Unemployment

The unemployment rate is defined as:

)(

)(

unemployedplusemployedForceLabour

workseekingactivelythoseUnemployedU n

ForceLabour

UnemployedU n

MACROECONOMICS Unemployment

Economic costs of unemployment there is a loss of production as a result of the unemployment: we can never retrieve that production There is the lost tax revenue which governments could have earned both in terms of direct taxes on income as well as indirect taxes on the increased expenditures coming from spending out of income rather than out of benefits.

workers who find work will lose their benefits and will have to pay tax on the employment income. They will choose to remain outside the employed section of the labour force

Costs of unemployment

Social costs of unemployment Having a significant section of the population unemployed leads to greater income inequality The alienation and frustration that set in with unemployment weakens social cohesion and can lead to greater crime and social unrest.

MACROECONOMICS Unemployment

IF WE TALK ABOUT UNEMPLOYMENT FROM SOCIOLOGICAL POINT OF VIEW

Are there, in your opinion, problems with employment of certain groups in society or everyone gets the same chance?

Can you think of some examples of discrimination when it comes to employment.

What are some of the factors of discrimination at labour market?

MACROECONOMICS Unemployment

QUESTIONS FOR STUDENTS TO RESEARCH: (for each country assigned)

unemployment rates differences in unemployment rates in different groups in society causes of unemployment; consequences of unemployment in the society what policies in the country are used to fight the unemployment.

MACROECONOMICS Unemployment

HOW TO DO A RESEARCH

In your research you should focus on statistics of unemployment articles about specific features of countries’ labor markets different studies of unemployment

In order to get this information you should visit web pages of national statistics agencies, European statistics agencydifferent NGO’s, government web pages etc.