UWC in Mostar

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• UWC in Mostar
• Academic year 2007 / 2008

ECONOMICS
Standard Level Second Year
Azra Bajramovic
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MACROECONOMICS Unemployment
Losing job, according to one study, is one of the
most stresfull things in life (just
after death of spouse and going to prison).
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MACROECONOMICS Unemployment

• Employees - those who do any kind of payed job
  but also those who have a job but are absent
  temporarily due to illness, maternity
  leave etc.
• Unemployed - not working but actively seeking
  job
• Out of working force - those who do not look for
  job or to ill to work

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MACROECONOMICS Unemployment

• International Labour Organization (ILO)
  definitions
• Employees people who regard themselves as paid
  employees. People with two or more jobs are
  counted only once.
• Self-employed people who regard themselves as
  self-employed, that is, who in their main
  employment work on their own account,
  whether or not they have employees.
• In employment employees, self-employed and
  participants in government training schemes
  and people doing unpaid family work.
• Unemployed those who are without a job, are
  available to start work in the next two weeks,
  who want a job and have been seeking a job in
  the last four weeks or are waiting to start a job
  already obtained.
• Labour Force also defined as economically
  active those in employment plus ILO
  unemployed.
• Economically inactive people who are neither in
  employment or unemployment. This includes those
  looking after a home or retired or permanently
  unable to work.

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MACROECONOMICS Unemployment
The unemployment rate is defined as
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MACROECONOMICS Unemployment
Costs of unemployment

• Economic costs of unemployment
• there is a loss of production as a result of the
  unemployment we can never retrieve that
  production
• There is the lost tax revenue which governments
  could have earned both in terms of direct taxes
  on income as well as indirect taxes on the
  increased expenditures coming from spending out
  of income rather than out of benefits.
• workers who find work will lose their benefits
  and will have to pay tax on the employment
  income. They will choose to remain outside the
  employed section of the labour force

Social costs of unemployment

• Having a significant section of the population
  unemployed leads to greater income inequality
• The alienation and frustration that set in with
  unemployment weakens social cohesion
  and can lead to greater crime and social
  unrest.

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MACROECONOMICS Unemployment

• IF WE TALK ABOUT UNEMPLOYMENT FROM
  SOCIOLOGICAL POINT OF VIEW
• Are there, in your opinion, problems with
  employment of certain groups in society
  or everyone gets the same chance?
• Can you think of some examples of discrimination
  when it comes to employment.
• What are some of the factors of discrimination
  at labour market?

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MACROECONOMICS Unemployment

• QUESTIONS FOR STUDENTS TO RESEARCH (for each
  country assigned)
• unemployment rates
• differences in unemployment rates in
  different groups in society
• causes of unemployment
• consequences of unemployment in the
  society
• what policies in the country are used to fight
  the unemployment.

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MACROECONOMICS Unemployment

• HOW TO DO A RESEARCH
• In your research you should focus on
• statistics of unemployment
• articles about specific features of countries
  labor markets
• different studies of unemployment
• In order to get this information you should visit
  web pages of national statistics agencies,
  European statistics agencydifferent NGOs,
  government web pages etc.