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C10: MACRO PROBLEMS - Coggle Diagram
C10: MACRO PROBLEMS
UNEMPLOYMENT
DEF:
LF participants
being available and
willing to work
but
unable to find jobs
Formula: UE % = (num of UE / LF) * 100
EFFECT OF UE
On Individual & Society
Family dispute
Social prob
Low standard living
lack of skilled
loss confidence
lack of income
On Economy
negative effect on growth
wastage of FoP
GDP Decline
threats to political satbility
increase criminal rate
Drop G revenue
decline in G development project
TYPES OF UE
2. Cyclical UE
occurrs when econs in recession
in Recession GDP decline and econs contract
Eg: Manufacturing workers lost their job due to Covid-19
3. Structural UE
LF cant response quickly to meet changes in econs
Eg: Tech. UE due to digitalisation
occurs when structural changes in econs
1. Frictional UE
occurs when workers entering and reentering the LF
usually happened in non permanent job
Eg: fresh graduate
4. Seasonal UE
occurs seasonal variation in the xtvt in econs
labour force is employed at times and
unemployed at other times.
Eg: Fisherman unable to catch fish in winter
INFLATION
DEF
continuous
increase in the general price
level
and services in the economy.
FORMULA = (CPI current - CPI previous) / CPI previous