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Economics Presentation

Done By: Neisha Mahase Sherries Lutawan & Sumier Sookdeo

A presentation on:
Unemployment

DEFINITION OF LABOUR FORCE


1. Those economically active and therefore in work or seeking work. 2. The total number of people employed or seeking employment in a country or region

UNEMPLOYMENT RATE
Unemployment rate is the number of employed people as a percentage (%) of the labour force. The unemployment figures indicate how many are not working for pay but seeking employment for pay. It is only indirectly connected with the number of people who are actually not working at all or working without pay. Unemployment rate in Trinidad and Tobago is 6.4 %.(est 2010)

DISTINGUISHING BETWEEN UNDEREMPLOYMENT AND UNEMPLOYMENT UNEMPLOYMENT: Officially, the unemployed are people who are registered as able, available and willing to work at the going wage rate but who cannot find work despite an active search for work. UNDEREMPLOYMENT: includes all persons whose skills, education or training qualified them for a higher skilled or better paying job than they presently hold.

EVALUATING THE COST OF UNEMPLOYMENT


High unemployment is widely recognised to create substantial costs for individuals and for the economy as a whole. Some of these costs are difficult to measure, especially the longer-term social costs of a high level of unemployment. Some of the costs are summarised below:
1. Loss of income: Unemployment normally results in a loss of income. The majority of the unemployed experience a decline in their living standards and are worse off out of work
2. Loss of national output: Unemployment involves a loss of potential national output and represents an inefficient use of scarce resources. If some people choose to leave the labour market permanently because they have lost the motivation to search for work, this can have a negative effect on long run aggregate supply (LRAS) and thereby damage the economys growth potential