116079_nainy Khandelwal Ppt.pptx

INSTITUTE OF EXCELLENCE IN HIGHER EDUCATION BHOPAL [M.P]

TOPIC – UNEMPLOYEMENT 2017 – 2018 116079

SUBMITTED TO PRASHANT KUMAR NAG

SUBMITTED BY NAINY KHANDELWAL

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UNEMPLOYMENT • The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. • During periods of recession, an economy usually experiences a relatively high unemployment rate. According to International Labour Organization report, more than 200 million people globally or 6% of the world's workforce were without a job in 2012. • There remains considerable theoretical debate regarding the causes, consequences and solutions for unemployment Nainy Khandelwal - 116079

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UNEMPLOYMENT

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UNEMPLOYMENT

TYPES OF UNEMPLOYMENT

Classical Unemployment Cyclical Unemployment

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CLASSICAL UNEMPLOYMENT • Classical, or real-wage unemployment, occurs when real wages for a job are set above the market-clearing level causing the number of job-seekers to exceed the number of vacancies. • On the other hand, some economists argue that as wages fall below a livable wage many choose to drop out of the labor market and no longer seek employment. • This is especially true in countries where low-income families are supported through public welfare systems. In such cases, wages would have to be high enough to motivate people to choose employment over what they receive through public welfare. Nainy Khandelwal - 116079

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CLASSICAL UNEMPLOYMENT

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CYCLICAL UNEMPLOYMENT • Cyclical, deficient-demand, or Keynesian unemployment, occurs when there is not enough aggregate demand in the economy to provide jobs for everyone who wants to work. • Demand for most goods and services falls, less production is needed and consequently fewer workers are needed, wages are sticky and do not fall to meet the equilibrium level, and mass unemployment results.

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CYCLICAL UNEMPLOYMENT

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HYPERLINK • For more graphs on unemployment you can click on the link given below: • https://www.google.co.in/search?q=PICS+OF+UNEMPLOYMENT&sa= X&rlz=1C1RLNS_enIN746IN747&biw=2049&bih=919&tbm=isch&tbo= u&source=univ&ved=0ahUKEwi07ef81r7XAhVBOo8KHdTjCLYQsAQIJg

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Action Button • Click on this arrow for the next slide

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