Employment, Macroeconomics



Full employment of human and non-human resources or at least minimization of unemployment is an accepted goal of macroeconomic policy. Also the best way to alleviate poverty is to provide gainful employment to the poor.

The rate of unemployment is simply the fraction or percentage of workforce that has no gainful employment. Unfortunately there are several definitional and measurement problems. Who constitutes the labor force? One answer could be: all those who want to work. But some are not permitted by law to be employed. Some who are eligible would like to work but are not actively searching for employment. Some will accept employment only under certain conditions. All these difficulties render the definition of labor force itself problematic. Then again when is a person 'unemployed'? Some are partially employed, some get sporadic employment on daily basis, some have offers of employment but are waiting for a better offer, some are in transition from one job to another. 

Despite these difficulties statisticians and economists have devised fairly good measures for labor force and unemployment. To implement these measures and estimate unemployment is a tough task. We will examine it briefly later.

One must also keep in mind that unemployment has regional, temporal and occupational dimensions. A substantial overall rate of unemployment is quite compatible with shortages of labor with specific skills or in a particular region or at a particular time of the year. 

Posted Date: 9/11/2012 6:43:07 AM | Location : United States

Related Discussions:- Employment, Assignment Help, Ask Question on Employment, Get Answer, Expert's Help, Employment Discussions

Write discussion on Employment
Your posts are moderated
Related Questions
The Concept of Taxation is explained below: Taxes are the general purpose, compulsory contributions by people to the public treasury (or national exchequer) to meet the expendi

Consider the following: "The physiocrats spoke of the natural order and favored laissez-faire yet strongly supported the absolute authority of the monarchy." Analyze this supposed

Your company has asked you to analyze two mutually exclusive projects for the coming year. Project A will have an initial outlay of $7,200. Project B will cost $6,800. Both project

Which economic system is the best solution to handling a crisis of epic proportion?

Consider the consumption decisions of R.B. Turbo, a new student at T University. Ms. Turbo has only available $1,000 in monthly income to spend on food and housing. In te

If you were a restaurant owner and you knew that the demand for your restaurant was elastic, how would you feel about a sales tax on restaurant food? Explain.

Explain the multiplier effect with example Deposits and loans in banks give rise to an important multiplier effect. We use a simple example to illustrate this effect. Consider

What is gross domestic product Economic growth is most commonly calculated in terms of the annual percentage rate of change in real gross domestic product (GDP).

Arrow up or down: An increase in the wage for high school graduates __________ the opportunity cost of college. A) arrow up B) Arrow down

The manager of the world famous Koala Caves offers a tour each afternoon starting at 3pm. The caves can be shown to only four people per day without undermining their ecology. Occa