Singapore School Kebon Jeruk Senior Secondary Students 2013 PowerPoint Presentations Unemployment Rate Causes and Consequences

1. Causes and
Consequences of
Unemployment
By Group 2

2. Seasonal Unemployment
Unemployment due to lack of demand during
certain times of the year.
Agriculture and construction activity tends to be
seasonal.

3. Example #1
during summer – number of
jobs in tourist industry
increase.
Example #2
during winter – number of
jobs in ski and snowboarding
resorts increase.

4. Casual Unemployment
Casual Unemployment is also known as
Frictional Unemployment.
Occurs when a worker leaves a job and spend
time looking for a better one.
Usually short term periods of unemployment
between jobs.

5. Example
Recent college graduate who suddenly becomes
available in the job market, but has yet to find his
first job.

6. Structural Changes
Refers to the change in demand caused by a change in
people’s tastes.

7. Structural Unemployment
Occurs from the lack in demand for the goods
and services a firm produces.
Many workers are made unemployed.
Workers become occupationally immobile.

9. Example
The change from labour-intensive production to high-tech
capital-intensive production.

10. Falling Aggregate Demand
Cyclical Unemployment: Too little demand for
goods and services in in the economy during a
recession.
Fall in demand during a slump  Reduces
spending  Stocks of unsold products
accumulate  Firms cut their production 
Increase in unemployment.

11. Small change in total expenditure can cause much
larger changes in income, output and
unemployment.

12. Imagine there is a car
manufacturer A
Car manufacturer A experiences a fall in demand, thus they
now produce less cars.

13. Jobs are lost.
Because car manufacturer A produces
less, they can cut costs by making workers
redundant.

14. Electricity
All the factories use
electricity, as “A” now
produce less, they do not
need as much electricity.
• What will happen to the
workers at power stations?

15. Coal and Oil
Power stations run on coal and oil.
• What will happen to the demand of coal and oil?
• What will happen to the coal-miners and oil-drillers?

16. Goods and
Services
All the people who have lost their jobs now
have less money to spend.
• What will happen to the level of demand for
all other goods?

17. Hence the term:

18. Thanks for listening