Unemployment

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Unemployment

  1. 1. UNEMPLOYMENTRUBEN FONSECA 2013
  2. 2. EUROZONE UNEMPLOYMENT When RATES (JANUARY Unemploym 2013)30.00% ent occurs?25.00% Unemployment occurs when people are without20.00% work or actively seeking work.15.00% 26.40% [VALOR] It is caused when10.00% someone is laid off, get [VALOR] [VALOR] [VALOR] fired or quits…5.00%0.00% Greece Spain Portugal Slovakia Ireland Source: Trading Economics
  3. 3. CAUSES OFUNEMPLOYMENT
  4. 4. OVER POPULATIONToo much population can increase unemployment, because governments are unableto create too much jobs at the same time.
  5. 5. FOREIGN PRODUCT COMPETITIONIf a foreign product is cheaper than a national product, most of the people will buy thecheaper one, so national companies will suffer and will need to fire people, due to lowdemand.
  6. 6. ECONOMIC INFLATIONWhen an economic inflation hits a country, many companies won’t be able to competewith other companies (most of them foreign) and will need to shut down their facilities.
  7. 7. ECONOMIC RECESSIONWhen an economic recession (or crisis) hits a country, many companies shut down theirfacilities, leading to dismissal a lot of people.
  8. 8. TECHNOLOGYMany companies only accept people with higher grades or specifications, due totecnology… Many people don’t have those specifications, so they can only aplly to jobs thataccept lower grades.
  9. 9. CONSEQUENCES OF UNEMPLOYMENT
  10. 10. LOSS OF INCOMEMost of unemployment people will experience a decline on their living standards and someof them will have financial problems and difficulties to pay their taxes .
  11. 11. LOSS OF NATIONAL OUTPUTA country’s economy will see it’s GDP going down because some people choose to leavethe labour market permanently, which could have a negative effect on the economic growth.
  12. 12. FISCAL COSTSDue to the fall in tax revenues, a government could see it’s budget deficit increased. Thatleads to raise taxation, applied by most of the governments in a crisis.
  13. 13. SOCIAL COSTSSome unemployed people can have a relationship with crime… Increased divorcerates, worsening health and lower life expectancy are also other consequences.
  14. 14. UNEMPLOYMENT SOLUTIONS
  15. 15. CREATION OF MORE JOBSIf a government creates more jobs, the unemployment rate will drop, as well as someproblems related to unemployment.
  16. 16. STIMULATION OF THE ECONOMYCreating funds and helps to national companies, will stimulate a state’s economy and it’seconomic growth.
  17. 17. NATIONAL PRODUCTS WITH LOWER PRICESIf the national products are cheaper than the foreign products, many people could buy thenational ones, due to the lower price.
  18. 18. INVESTMENT ON THE PRIMARY SECTORA strong primary sector, will be less damaged when a global crisis hits a country. A strongagriculture, fishing and trade will be essential to a state’s economy.

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