“Of all the aspects of social misery, nothing is as heartbreaking as unemployment.” (Addams 1910)
Unemployment has long been a headache macroeconomic issue for all the governments around the world and is defined as people in working age but without job for the past four weeks according to International Labor Organization. In late 2009 the number of people unemployed or willing to work reached highest 8.2% since 1997. These increases are not start with the recession but since 2005, (Boardman 2010:105). Regarding the costs of unemployment it is not merely the problems of the unemployed themselves but also concern national output, government taxes, human resources and even social turbulence. Therefore this essay will illustrate the causes of unemployment, approaches to tackle unemployment in the UK and how approaches influence on other macroeconomic issues.
It is possibly decrease unemployment rate in nation with implementing relative approaches by knowing the fundamental causes of unemployment. To start with, causes of unemployment generally refer to two broad categories-equilibrium and disequilibrium unemployment. The former is defined as “Unemployment resulting from real wage rates in the economy being above the equilibrium level and the latter is defined as the difference between those who would like employment at the current wage rate and those willing able to take a job.” Sloman(1991:421).
Disequilibrium unemployment is generally caused by real-wage unemployment and demand-deficient unemployment. Real-wage unemployment is usually caused by the power of union or national minimum wage set above the equilibrium wage in the market. In 1970, union power reached the highest and trough at 1990, i...
... middle of paper ...
Addams,J (1912).Twenty Years at Hull-House.The MacMillan Company
A.Pissarides,C (2003). Unemployment in British: AND European Success Story. Pages 2
Adams, S. Periton, P (2005). Cima Study Systems 2006: Economics for Business. Pages 137
Boardman,J (2010). Social Inclusion and Mental Health. The Royal College of psychiatrists. Pages 105
Moon, J.Richardson, J. (1985) Unemployment in the UK. Pages 64
Malcolm, S & David, S. (2008). On the definition of involuntary unemployment. Journal of Socio-Economics
Solman,J. Wride, A (2009). Economic 7th edition. Pages 421-422
Werding,M (2006). Structural unemployment in Western Europe: reasons and remedies. Massachusetts Institute of Technology. Pages 221
Let Our AI Magic Supercharge Your Grades!