SlideShare a Scribd company logo
INVESTMENTAND
EMPLOYMENTPRESENTED BY:
NIKITHA MARIA GEORGE
POOJA SINGH
PREETHE S
RIYA REJI
BALAYESHWANTHI
UNEMPLOYMENT
◦ Unemployment occurs when a person who is actively searching for
employment is unable to find work.
◦ Unemployment is often used as a measure of the health of the
economy.
◦ “Unemployment refers to the share of the labour force that is without
work but available for and seeking employment” – World Bank.
UNEMPLOYMENT
VOLUNTARY
FRUSTRATION
INCOME EFFECT
ATTITUDE TO
WORK
INVOLUNTARY
STRUCTURAL
UNEMPLOYMENT
FRICTIONAL
UNEMPLOYMENT
SEASONAL
UNEMPLOYMENT
CYCLICAL
UNEMPLOYMENT
CAUSES OF EMPLOYMENT
CONSEQUENCES OF UNEMPLOYMENT
◦GDP loss
◦Income inequality
◦Loss of income
◦Psychological cost
◦Fiscal Costs – Loss of tax revenue
◦Social Costs
UNEMPLOYMENT RATE
◦The number of people officially unemployed divided by the
labour force.
◦The civilian labour force figure excludes:
◦ Those in the armed services
◦ Prison
◦ Mental Hospitals
◦ Home – makers
◦ Retirees
◦ Full – time students
Business cycle and employment
BUSINESS CYCLE BEHAVIOUR
◦Recession:
◦ Beginning – employment is static (institutional arrangements)
◦ Harder recession – restructuring of companies – downsizing of
employees.
◦Recovery:
◦ Jobless recovery
◦ Full exploitation of production capacity and personnel
◦Boom:
◦ New investments – increased employment.
MONEY SUPPLY AND EMPLOYMENT
◦Expansionary monetary policy → infusion of more money in
economy → supply of money in economy increases → cost of
money i.e. interest rate decreases → due to decreased interest
rates, lending activity increases → people venture in new
business activities → demand for machines, tools, equipment
and other capital goods increases → new industries come into
existence → demand for labour increases → employment rate
increases or unemployment decreases.
◦
◦Contraction monetary policy → reduction of money from
economy → supply of money in economy decreases → cost of
money i.e. interest rate increases → due to increased interest
rates, lending activity decreases → people avoid any further
investment in new business venture → demand for machines,
tools, equipment and other capital goods decreases → no new
industries come into existence → demand for labour decreases
→ employment rate decreases or unemployment increases.
STICKY WAGES
◦Industries prefer to lay off employees rather than
cutting down wages.
◦Cutting down wages decreases the morale of the
employees.
STICKY WAGE THEORY
➢ According to this theory, when employment rises, the
wages of those workers that remain employed tend to stay
the same or grow at a slower rate than before rather than
falling with the decrease in demand for labor.
➢sticky wages is also often referred as “wage stickiness.”
➢Reasons for Wage Stickiness
◦Imperfect information-market clearing
◦Coordination problems
◦ Efficiency wages and costs of price change
UNEMPLOYMENT RATES FOR PAST 10 YEARS:
INVESTMENT
Two roles in macroeconomics:
It can have a major impact on AD (real output and
employment)
It leads to capital accumulation (it increases the nation's
potential output and promotes economic growth in the long
run)
TYPES OF INVESTMENT
◦ Autonomous – investment does not change with the changes in the
income level
◦ Induced – investment does change with the changes in the income
level
FACTORS AFFECTING INVESTMENT
◦Element of Uncertainty
◦Existing Stock of Capital Goods
◦Level of Income
◦Consumer Demand
◦Liquid Assets
◦Inventions and Innovations
◦New Products
◦Growth of Population
PARADOX OF THRIFT
◦In a recession period, more savings can worsen
the economy.
◦One person’s spending is another person’s
income.
◦More savings > less Spending > negative
multiplier effect> affects the economy
IMPLICATIONS OF POOR DOMESTIC SAVINGS
• Higher cost of capital
• Low investment
• Increased fiscal costs
• reduction in social and economic delivery
• Poor growth
• Increased poverty
• Household vulnerability
EFFECT OF DOMESTIC SAVING ON NATIONAL
INCOME
1.Size of income: as income increases all things being equal,
savings also increase
2.Rate of interest: a higher rate of interest may attract more people
to save and vice versa
3.Government policy: the government can influence the level of
savings in different ways such as attractive rate of interest policy
and income tax relief or tax holidays or tax concessions .
4.Sense of responsibility: people with careful spending
habits save even when the income is low compared to
extravagant people who don’t even save at higher
income levels.
5.Political situation: a country with a stable political
climate encourages citizens as well as foreign investors
to save and invest which results into economic growth
EFFECT OF FDI ON EMPLOYMENT
◦ The following are four different effects of FDI on Job creation:
1-Employment Creation: It means the FDI brings new production
capacity and new jobs. Meanwhile it can improve the development
of relevant industries.
2- Employment Crowding-out: It means the inflow of the FDI makes
the competition more intensive. So some domestic enterprises have
had to reduce employment to improve their competitiveness.
3- Employment Shift: It means the cooperation between
foreign and domestic companies will create joint ventures.
That will make workers transfer to new enterprises.
4- Employment Loss: It means the foreign-invested enterprise
have their own management methods. Those who have not
efficiency or are not suitable for this corporate environment
will lose their jobs.
THANK YOU

More Related Content

What's hot

V3 employment-unemployment
V3 employment-unemploymentV3 employment-unemployment
V3 employment-unemployment
Dhirendra Chauhan
 
Capital formation its source
Capital formation its sourceCapital formation its source
Capital formation its source
Raffles university, Neemrana
 
Factors of production
Factors of productionFactors of production
Factors of production
North Gwinnett Middle School
 
Unemployment
UnemploymentUnemployment
Unemployment
Rahul Goyal
 
Economic Growth
Economic GrowthEconomic Growth
Economic Growth
Lumen Learning
 
vicious circle of poverty
vicious circle of povertyvicious circle of poverty
vicious circle of poverty
The Young Indian Economists
 
Business Environment
Business Environment Business Environment
Business Environment
T S Kavi Kumar
 
unemployment
unemployment unemployment
unemployment
Dheeraj Yarra
 
Topic 7 - Economic Growth
Topic 7 - Economic GrowthTopic 7 - Economic Growth
Topic 7 - Economic Growth
Fatin Nazihah Aziz
 
Capital formation and economic development
Capital formation and economic developmentCapital formation and economic development
Capital formation and economic development
ridailyas3
 
AS Macro: Introduction to Economic Development
AS Macro: Introduction to Economic DevelopmentAS Macro: Introduction to Economic Development
AS Macro: Introduction to Economic Development
tutor2u
 
What are the effects of Economic Growth?
What are the effects of Economic Growth?What are the effects of Economic Growth?
What are the effects of Economic Growth?
Susanna Pierce
 
Effects of unemployment on economy
Effects of unemployment on economyEffects of unemployment on economy
Effects of unemployment on economy
Mahvesh Zahra
 
Economic
EconomicEconomic
Economic
mahee tori
 
Factors of production
Factors of productionFactors of production
Factors of production
klgriffin
 
Presentation on capital fromation in agriculture
Presentation on capital fromation in agriculturePresentation on capital fromation in agriculture
Presentation on capital fromation in agriculture
Mukund Kulkarni
 
The theory of balanced growth
The theory of balanced growthThe theory of balanced growth
The theory of balanced growth
Anjali Singh
 
6.5 causes and effects of unemployment
6.5 causes and effects of unemployment6.5 causes and effects of unemployment
6.5 causes and effects of unemployment
Kashif Ali
 
Four factors of economic growth
Four factors of economic growthFour factors of economic growth
Four factors of economic growth
chrisallie93
 
Government Entrepreneurship
Government EntrepreneurshipGovernment Entrepreneurship
Government Entrepreneurship
Jorge Saguinsin
 

What's hot (20)

V3 employment-unemployment
V3 employment-unemploymentV3 employment-unemployment
V3 employment-unemployment
 
Capital formation its source
Capital formation its sourceCapital formation its source
Capital formation its source
 
Factors of production
Factors of productionFactors of production
Factors of production
 
Unemployment
UnemploymentUnemployment
Unemployment
 
Economic Growth
Economic GrowthEconomic Growth
Economic Growth
 
vicious circle of poverty
vicious circle of povertyvicious circle of poverty
vicious circle of poverty
 
Business Environment
Business Environment Business Environment
Business Environment
 
unemployment
unemployment unemployment
unemployment
 
Topic 7 - Economic Growth
Topic 7 - Economic GrowthTopic 7 - Economic Growth
Topic 7 - Economic Growth
 
Capital formation and economic development
Capital formation and economic developmentCapital formation and economic development
Capital formation and economic development
 
AS Macro: Introduction to Economic Development
AS Macro: Introduction to Economic DevelopmentAS Macro: Introduction to Economic Development
AS Macro: Introduction to Economic Development
 
What are the effects of Economic Growth?
What are the effects of Economic Growth?What are the effects of Economic Growth?
What are the effects of Economic Growth?
 
Effects of unemployment on economy
Effects of unemployment on economyEffects of unemployment on economy
Effects of unemployment on economy
 
Economic
EconomicEconomic
Economic
 
Factors of production
Factors of productionFactors of production
Factors of production
 
Presentation on capital fromation in agriculture
Presentation on capital fromation in agriculturePresentation on capital fromation in agriculture
Presentation on capital fromation in agriculture
 
The theory of balanced growth
The theory of balanced growthThe theory of balanced growth
The theory of balanced growth
 
6.5 causes and effects of unemployment
6.5 causes and effects of unemployment6.5 causes and effects of unemployment
6.5 causes and effects of unemployment
 
Four factors of economic growth
Four factors of economic growthFour factors of economic growth
Four factors of economic growth
 
Government Entrepreneurship
Government EntrepreneurshipGovernment Entrepreneurship
Government Entrepreneurship
 

Similar to INVESTMENT AND UNEMPLOYMENT

Ch 24 and 25. Government Macroeconomic Objectives.pptx
Ch 24 and 25. Government Macroeconomic Objectives.pptxCh 24 and 25. Government Macroeconomic Objectives.pptx
Ch 24 and 25. Government Macroeconomic Objectives.pptx
ssuserf4d898
 
Economics hsc topic 3
Economics hsc topic 3Economics hsc topic 3
Economics hsc topic 3
Tom Wilkinson
 
Presentation1(1)
Presentation1(1)Presentation1(1)
Presentation1(1)
Hadia Anoshiya
 
lecture 30 @@@@@@.pptx
lecture 30 @@@@@@.pptxlecture 30 @@@@@@.pptx
lecture 30 @@@@@@.pptx
02LabiqaIslam
 
Unemployment
Unemployment  Unemployment
Unemployment
Vrindasharma57
 
Unemployment
Unemployment Unemployment
Unemployment
learn addict
 
Business cycles
Business cyclesBusiness cycles
Business cycles
Jerome Rendon
 
External Environment
External EnvironmentExternal Environment
External Environment
Reactivador Fantasma
 
How to growth
How to growthHow to growth
How to growth
kkejo
 
Business Cycles, Unemployment and Inflation
Business Cycles, Unemployment and InflationBusiness Cycles, Unemployment and Inflation
Business Cycles, Unemployment and Inflation
Kim Clyde Mallari
 
Unemployment grp 9
Unemployment grp 9Unemployment grp 9
Unemployment grp 9
Jatin Kaushal
 
World Development report 2005
World Development report 2005World Development report 2005
World Development report 2005
British Council
 
Presentation topic on unemployment .pptx
Presentation topic on unemployment .pptxPresentation topic on unemployment .pptx
Presentation topic on unemployment .pptx
subhanhaider703
 
The need for fiscal adjustment in the region - Peter THURLOW (English)
The need for fiscal adjustment in the region - Peter THURLOW (English)The need for fiscal adjustment in the region - Peter THURLOW (English)
The need for fiscal adjustment in the region - Peter THURLOW (English)
OECD Governance
 
Macroeconomics
MacroeconomicsMacroeconomics
Macroeconomics
samyukta raman
 
Current unemployment
Current unemploymentCurrent unemployment
Current unemployment
Sourav Bhargav
 
unemployment from micro economics
unemployment from micro economicsunemployment from micro economics
unemployment from micro economics
DiptoDey3
 
pptonunemployment-121203092944-phpapp02.pptx
pptonunemployment-121203092944-phpapp02.pptxpptonunemployment-121203092944-phpapp02.pptx
pptonunemployment-121203092944-phpapp02.pptx
NandniMorbiya
 
Unemployement 2
Unemployement 2Unemployement 2
Unemployment in India
Unemployment in IndiaUnemployment in India
Unemployment in India
Karishma Chaudhary
 

Similar to INVESTMENT AND UNEMPLOYMENT (20)

Ch 24 and 25. Government Macroeconomic Objectives.pptx
Ch 24 and 25. Government Macroeconomic Objectives.pptxCh 24 and 25. Government Macroeconomic Objectives.pptx
Ch 24 and 25. Government Macroeconomic Objectives.pptx
 
Economics hsc topic 3
Economics hsc topic 3Economics hsc topic 3
Economics hsc topic 3
 
Presentation1(1)
Presentation1(1)Presentation1(1)
Presentation1(1)
 
lecture 30 @@@@@@.pptx
lecture 30 @@@@@@.pptxlecture 30 @@@@@@.pptx
lecture 30 @@@@@@.pptx
 
Unemployment
Unemployment  Unemployment
Unemployment
 
Unemployment
Unemployment Unemployment
Unemployment
 
Business cycles
Business cyclesBusiness cycles
Business cycles
 
External Environment
External EnvironmentExternal Environment
External Environment
 
How to growth
How to growthHow to growth
How to growth
 
Business Cycles, Unemployment and Inflation
Business Cycles, Unemployment and InflationBusiness Cycles, Unemployment and Inflation
Business Cycles, Unemployment and Inflation
 
Unemployment grp 9
Unemployment grp 9Unemployment grp 9
Unemployment grp 9
 
World Development report 2005
World Development report 2005World Development report 2005
World Development report 2005
 
Presentation topic on unemployment .pptx
Presentation topic on unemployment .pptxPresentation topic on unemployment .pptx
Presentation topic on unemployment .pptx
 
The need for fiscal adjustment in the region - Peter THURLOW (English)
The need for fiscal adjustment in the region - Peter THURLOW (English)The need for fiscal adjustment in the region - Peter THURLOW (English)
The need for fiscal adjustment in the region - Peter THURLOW (English)
 
Macroeconomics
MacroeconomicsMacroeconomics
Macroeconomics
 
Current unemployment
Current unemploymentCurrent unemployment
Current unemployment
 
unemployment from micro economics
unemployment from micro economicsunemployment from micro economics
unemployment from micro economics
 
pptonunemployment-121203092944-phpapp02.pptx
pptonunemployment-121203092944-phpapp02.pptxpptonunemployment-121203092944-phpapp02.pptx
pptonunemployment-121203092944-phpapp02.pptx
 
Unemployement 2
Unemployement 2Unemployement 2
Unemployement 2
 
Unemployment in India
Unemployment in IndiaUnemployment in India
Unemployment in India
 

Recently uploaded

TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
Donc Test
 
Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
Commonwealth
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
bresciafarid233
 
KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksKYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
Any kyc Account
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
nimaruinazawa258
 
Initial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.pptInitial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.ppt
ribhi87
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
Majid Iqbal
 
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptxExploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
cosmo-soil
 
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
234knry
 
Power point analisis laporan keuangan chapter 7 subramanyam
Power point analisis laporan keuangan chapter 7 subramanyamPower point analisis laporan keuangan chapter 7 subramanyam
Power point analisis laporan keuangan chapter 7 subramanyam
FarhanRafifSidqi
 
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
brunasordi905
 
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
Falcon Invoice Discounting
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
asukqco
 
Discover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive GuidanceDiscover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive Guidance
36 Crypto
 
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
28xo7hf
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
28xo7hf
 
What's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightnessWhat's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightness
Labour Market Information Council | Conseil de l’information sur le marché du travail
 
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdfMacroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
olaola5673
 
FCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptxFCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptx
nalamynandan
 
How to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete GuideHow to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete Guide
Daniel
 

Recently uploaded (20)

TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
 
Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]Monthly Market Risk Update: June 2024 [SlideShare]
Monthly Market Risk Update: June 2024 [SlideShare]
 
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
Tdasx: In-Depth Analysis of Cryptocurrency Giveaway Scams and Security Strate...
 
KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksKYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
KYC Compliance: A Cornerstone of Global Crypto Regulatory Frameworks
 
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
Tdasx: Interpreting the 2024 Cryptocurrency Market Funding Trends and Technol...
 
Initial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.pptInitial Public Offering (IPO) Process.ppt
Initial Public Offering (IPO) Process.ppt
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
 
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptxExploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
Exploring-Madhya-Pradesh-Culture-Heritage-and-Land-Records.pptx
 
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
 
Power point analisis laporan keuangan chapter 7 subramanyam
Power point analisis laporan keuangan chapter 7 subramanyamPower point analisis laporan keuangan chapter 7 subramanyam
Power point analisis laporan keuangan chapter 7 subramanyam
 
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
欧洲杯投注-欧洲杯投注买球-欧洲杯投注买球网|【​网址​🎉ac22.net🎉​】
 
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
falcon-invoice-discounting-a-premier-investment-platform-for-superior-returns...
 
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
一比一原版(cwu毕业证书)美国中央华盛顿大学毕业证如何办理
 
Discover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive GuidanceDiscover the Future of Dogecoin with Our Comprehensive Guidance
Discover the Future of Dogecoin with Our Comprehensive Guidance
 
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
1比1复刻(ksu毕业证书)美国堪萨斯州立大学毕业证本科文凭证书原版一模一样
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
 
What's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightnessWhat's a worker’s market? Job quality and labour market tightness
What's a worker’s market? Job quality and labour market tightness
 
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdfMacroeconomic-digest-of-Ukraine-0624-Eng.pdf
Macroeconomic-digest-of-Ukraine-0624-Eng.pdf
 
FCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptxFCCS Basic Accounts Outline and Hierarchy.pptx
FCCS Basic Accounts Outline and Hierarchy.pptx
 
How to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete GuideHow to Invest in Cryptocurrency for Beginners: A Complete Guide
How to Invest in Cryptocurrency for Beginners: A Complete Guide
 

INVESTMENT AND UNEMPLOYMENT

  • 1. INVESTMENTAND EMPLOYMENTPRESENTED BY: NIKITHA MARIA GEORGE POOJA SINGH PREETHE S RIYA REJI BALAYESHWANTHI
  • 2. UNEMPLOYMENT ◦ Unemployment occurs when a person who is actively searching for employment is unable to find work. ◦ Unemployment is often used as a measure of the health of the economy. ◦ “Unemployment refers to the share of the labour force that is without work but available for and seeking employment” – World Bank.
  • 4. CONSEQUENCES OF UNEMPLOYMENT ◦GDP loss ◦Income inequality ◦Loss of income ◦Psychological cost ◦Fiscal Costs – Loss of tax revenue ◦Social Costs
  • 5. UNEMPLOYMENT RATE ◦The number of people officially unemployed divided by the labour force. ◦The civilian labour force figure excludes: ◦ Those in the armed services ◦ Prison ◦ Mental Hospitals ◦ Home – makers ◦ Retirees ◦ Full – time students
  • 6. Business cycle and employment
  • 7. BUSINESS CYCLE BEHAVIOUR ◦Recession: ◦ Beginning – employment is static (institutional arrangements) ◦ Harder recession – restructuring of companies – downsizing of employees. ◦Recovery: ◦ Jobless recovery ◦ Full exploitation of production capacity and personnel ◦Boom: ◦ New investments – increased employment.
  • 8. MONEY SUPPLY AND EMPLOYMENT ◦Expansionary monetary policy → infusion of more money in economy → supply of money in economy increases → cost of money i.e. interest rate decreases → due to decreased interest rates, lending activity increases → people venture in new business activities → demand for machines, tools, equipment and other capital goods increases → new industries come into existence → demand for labour increases → employment rate increases or unemployment decreases. ◦
  • 9. ◦Contraction monetary policy → reduction of money from economy → supply of money in economy decreases → cost of money i.e. interest rate increases → due to increased interest rates, lending activity decreases → people avoid any further investment in new business venture → demand for machines, tools, equipment and other capital goods decreases → no new industries come into existence → demand for labour decreases → employment rate decreases or unemployment increases.
  • 10. STICKY WAGES ◦Industries prefer to lay off employees rather than cutting down wages. ◦Cutting down wages decreases the morale of the employees.
  • 11. STICKY WAGE THEORY ➢ According to this theory, when employment rises, the wages of those workers that remain employed tend to stay the same or grow at a slower rate than before rather than falling with the decrease in demand for labor. ➢sticky wages is also often referred as “wage stickiness.”
  • 12. ➢Reasons for Wage Stickiness ◦Imperfect information-market clearing ◦Coordination problems ◦ Efficiency wages and costs of price change
  • 13. UNEMPLOYMENT RATES FOR PAST 10 YEARS:
  • 14. INVESTMENT Two roles in macroeconomics: It can have a major impact on AD (real output and employment) It leads to capital accumulation (it increases the nation's potential output and promotes economic growth in the long run)
  • 15. TYPES OF INVESTMENT ◦ Autonomous – investment does not change with the changes in the income level ◦ Induced – investment does change with the changes in the income level
  • 16. FACTORS AFFECTING INVESTMENT ◦Element of Uncertainty ◦Existing Stock of Capital Goods ◦Level of Income ◦Consumer Demand ◦Liquid Assets ◦Inventions and Innovations ◦New Products ◦Growth of Population
  • 17. PARADOX OF THRIFT ◦In a recession period, more savings can worsen the economy. ◦One person’s spending is another person’s income. ◦More savings > less Spending > negative multiplier effect> affects the economy
  • 18.
  • 19. IMPLICATIONS OF POOR DOMESTIC SAVINGS • Higher cost of capital • Low investment • Increased fiscal costs • reduction in social and economic delivery • Poor growth • Increased poverty • Household vulnerability
  • 20. EFFECT OF DOMESTIC SAVING ON NATIONAL INCOME 1.Size of income: as income increases all things being equal, savings also increase 2.Rate of interest: a higher rate of interest may attract more people to save and vice versa 3.Government policy: the government can influence the level of savings in different ways such as attractive rate of interest policy and income tax relief or tax holidays or tax concessions .
  • 21. 4.Sense of responsibility: people with careful spending habits save even when the income is low compared to extravagant people who don’t even save at higher income levels. 5.Political situation: a country with a stable political climate encourages citizens as well as foreign investors to save and invest which results into economic growth
  • 22. EFFECT OF FDI ON EMPLOYMENT ◦ The following are four different effects of FDI on Job creation: 1-Employment Creation: It means the FDI brings new production capacity and new jobs. Meanwhile it can improve the development of relevant industries. 2- Employment Crowding-out: It means the inflow of the FDI makes the competition more intensive. So some domestic enterprises have had to reduce employment to improve their competitiveness.
  • 23. 3- Employment Shift: It means the cooperation between foreign and domestic companies will create joint ventures. That will make workers transfer to new enterprises. 4- Employment Loss: It means the foreign-invested enterprise have their own management methods. Those who have not efficiency or are not suitable for this corporate environment will lose their jobs.
  • 24.