The Economic Crisis Essay

The Economic Crisis Essay

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The economic crisis in 2014 - 2015 hit many countries, and more will follow in the next few years. Some of these countries that were affected by the global economic crisis are Portugal, Italy, Greece, Spain (also known as ' 'PIGS ' ') [Investopedia, LLC. (2015)], Cyprus and Ireland [Guardian News and Media Limited. (2015)]. Due to the crisis, unemployment rate has raised significantly and in some countries goes as high as 28%.The remaining population is working with a very low basic salary reaching below the minimum living wages. Unemployment by definition is to be searching for a job and not being able to find one, hence the said person/s stays unemployed. Unemployment can be measured, calculated in many different ways, the most known ones being: The claimant count, The Labour Force Survey (LFS) with the most frequently cited measured being the unemployment rate. [Andrew Gillespie (2007) p.423]. The formula for the calculation of the unemployment rate is: Number of Unemployment .100 .
Labour Force
The Labour Force Formula is being calculated by taking the number of unemployment people, and then divide it by the Labour Force and finally then multiplying it by 100. [HOUGHTON MIFFLIN HARCOURT. (2014)]. Unemployment is one of the biggest problems society faces during an economic crisis. There are different reasons that may increase the unemployment rate; some of them are listed below. [Andrew Gillespie (2007) p.424]
Cyclical unemployment: this is when individuals lose their jobs, as a result of downturn in aggregate demand (AD). It 's called Demand Definition.
Frictional Unemployment: Is when the people move between jobs like the graduates and people who are changing works.
Classical Unemployment: ...


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...o the owner will increase the price of the milk to cover their loss of £1.25 per each worker. I don’t believe there is any company who will maintain the same prices since they will be losses incurred.
In conclusion I believe that increasing or not the minimum living wage, the unemployment rate will stay as it is. All the governments around the world have to take the first step and put an end to the high prices and start targeting the minimum living wages to make money. They have to start thinking more about the human aspect and how this will make their lives difficult. If the governments are not able to find a solution for this, many people will lose their homes, their families and the most important their life, because they will not be even able to support themselves. The economic powers of the planet need to do something about this and start improving human lives.

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