Macroeconomics

1. Unemployment
Presented by:

2. Defined as people from the total
population above the 16 years of age, not in
any institutions and who are either employed
or unemployed but actively seeking for jobs.
Labor
Force

3. Defined as labor force
participants being available and
willing to work but unable to
find jobs.
Unemployment

4. The percentage of the labor
force that is unemployed
and actively seeking jobs.
Unemployment
Rate

5. An individual who wants to work
but has been unsuccessful for a
long period in finding a job and
has given up seeking jobs.
A
Discouraged
Worker

6. An individual who works part-
time or who are in jobs below
their capability, but who are
seeking full-time employment.
Underemployment

7. The situation in the
economy where all available
resources are employed to
produce goods and services.
Full
Employment

8. CALCULATION
UNEMPLOYMENT = NUMBER OF UNEMPLOYED X 100%
RATE LABOUR FORCE

9. Type of
Unemployment
Frictional
Unemployment
Structural
Unemployment
Cyclical
Unemployment
Seasonal
Unemployment

10. Effects of
Unemployment
Effects on
Individuals
and Society
Effects on
the
Economy

11. Fiscal Policy Monetary
Policy
Direct Control
Measures
Providing training & education
Job creation
Development of new land
Decrease in tax
Increase in government expenditure
Open market operation
Lowering reserve requirement
Lowering discount rate
Lowering interest rate