a question that goes along with another question asked in here about unemployment rates in economics class.
can anyone help answer this one.
IT might help to view the answer in yahoo answers on last question.
2006-10-21 23:45:05 · 3 answers · asked by THERESA H 1 in Social Science ➔ Economics
The natural unemployment rate is the LR sustainable amount of unemployment, and it depends on the "structure of the economy". For example, some people such as mothers choose to raise children instead of work and many are retired.
By the "economy's structure" we are referring mostly to workplace laws and union membership. The freer the markets are to hire and fire, the lower is the natural rate of unemployment. In Europe, labor laws are extensive and tight, eg. not allowed to work more than 35hrs per week, until 18yrs of age... They have a very high rate of natural unemployment
In Australia (my country), the government in the past have been trying to abolish compulsory union membership, and union membership has fallen markedly. Unions cause the market to hire a less than efficient number of employees (due to demands for higher wages). High union membership leads to a high level of natural unemployment.
A better phrase for the natural rate of unemployment is the "structural rate of unemployment". In the US, the natural rate of unemployment is one of the lowest in the world. Also related is the minimum wage, the higher it is, the higher the natural level of unemployment - so in real terms this has declined recently.
2006-10-22 02:58:13 · answer #1 · answered by Anonymous · 0⤊ 0⤋
it is quite drastically changed the rate of un employment these present world
first and foremost globalization is something people can move around the globe to find better jobs and better remuneration, opportunities are increased hand in hand with development and economy got boosted due to growth and GDP also grew well.
development of computers and the need of software and its hunger made presently India a super power in manpower , this example is quoted based on various facts.
2006-10-22 02:20:40 · answer #2 · answered by david j 5 · 0⤊ 0⤋
Unemployment in GB now stands at 5 Million and is rising substantially weekly.
2006-10-22 03:00:08 · answer #3 · answered by RBJ 2 · 0⤊ 0⤋