Impact on Unemployment on Standard of Living - 783 Words

If unemployment rises in a country, will its standard of living necessarily decline? Unemployment refers to the condition and extent of joblessness within an economy, and is measured in terms of the unemployment rate, which is the number of unemployed workers divided by the total civilian labor force. If unemployment rises in a country it will affect the country’s standard of living in a negative way, take Jamaican economy for example, approximately 65% of the labour is unemployed, so if 65% of the population is not earning an income /income is not being generated then there is going to be a fall out in the economy which will result in recession and also the GDP will decline. If unemployment continues to increase the standard of†¦show more content†¦Frictional unemployment are individuals that are temporarily unemployed while transiting between jobs or just entering the labour market. This kind is typically short in duration but always present in a market economy. Structural Unemployment whenever an economy undergoes basic structural changes there is the possibility of some part of the labor force being thrown out of employment. The long term process of economic development and growth gives rise to variety of structural changes. Considerable changes in productive activity from traditional agriculture to modern industry; transformation of rural sectors into urban units; replacement of small scale and cottage industries by large scale manufacturing units; introduction of electricity or other sources of commercial energy in place of manual and animal power are some examples of structural changes. The economy under the process of structural changes is in the condition of transition. Some workers are likely to become jobless during the process of transition. Moreover, the duration of such unemployment may also be fairly long depending upon the extent of corrective and restorative measures introduced to restrict the period of unemployment. What are the policies which a government may adopt to reduce unemplyment Increased Government Expenditure The Government can raise the level of its own spending. This fiscal pump-priming directly increases aggregate demand and can have a multiplier effect onShow MoreRelatedGross State Product ( Gsp ) Essay1252 Words   |  6 PagesCalifornia in 2015 is $2,229,070 million dollars, which is about 13.8% of the Gross Domestic Product of the whole United States calculated around $16,146,736 million dollars; this puts California as the state with the most impact on the GDP, right above Texas. which currently impacts GDP of the U.S. at 9.2%. In the beginning of 2015, California had a GSP of $2,171,390 million, while in the end of 2015 it was $2,229,070 million. 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