Unemployment Unemployment occurs when a person is available to work and currently seeking work, but the person is without work.The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of those in the labor force who are unemployed. There are a variety of different causes of unemployment, and disagreement on which causes are most important.Different countries suggest different policies to address unemployment. Monetarists for example, believe that controlling inflation to facilitate growth and investment is more important, and will lead to increased employment in the long run. Keynesians on the other hand emphasize the smoothing out of business cycles by manipulating aggregate demand. There is also disagreement on how exactly to measure unemployment. Different countries experience different levels of unemployment. Measurement Though many people care about the number of unemployed, economists typically focus on the unemployment rate. This corrects for the normal increase in the number of people employed due to increases in population and increases in the labor force relative to the population. The unemployment rate is expressed as a percentage, and is calculated as follows: Unemployment Rate=Unemployed Workers\Total Labor Force As defined by the International Labour Organization, "unemployed workers" are those who are currently not working but are willing and able to work for pay, currently available to work, and have actively searched for work.
Pages to are hidden for
"Unemployment"Please download to view full document