Labor, Employment & Unemployment.2016mid

LABOR, EMPLOYMENT &
UNEMPLOYMENT
Asst.Prof.Teresita Balgos )(
2/15/2016
Outline
Labor, Labor Force, Employment, Labor Market

Determinants of Employment
Determinants of the Demand for Labor
Determinants of Labor Supply
Determinants of Wages
The Wage System
Unemployment
2/15/2016
Labor is one of the resources used in

production, making the goods and
services we need. It is also the
aggregate of all human physical and
mental effort.
Labor Force is the number of people
in work or actively seeking for paid
employment and are available to start
for work.
Employment provides most of us with
the incomes we need to purchase
goods
and services
2/15/2016
The Production Side of Labor

Percent of Employed by Industry
60
%
E
m
p
l
o
y
e
d
50
40
30
20
10
0
1900
1910
1920
1930
1940
1950
1960
1970
1980
1990
Year
Agriculture
Asst.Prof.Teresita Balgos
)(
Manufacturing
Non-government services
Government
services
2/15/2016
2000
TABLE 10.2 - Labor Productivity by Region and Sector,

Philippines: 2012 - 2014
(In Pesos)
At Current Prices
REGION AND SECTOR
2012 r
2013 r
At Constant 2000 Prices

2014
2012 r
2013 r
327,100
PHILIPPINES
280,880
302,804
2014
185,351
167,692
177,084
Agriculture, Hunting, Forestry and Fishing
103,346
109,603
121,018
57,800
59,703
60,827
Industry
574,604
605,646
a
643,570
353,725
373,779
a
388,308
Services
304,158
326,833
350,322
180,875
187,976
195,885
National Capital Region
851,486
933,712
986,681
501,123
533,554
548,170
Agriculture, Hunting, Forestry and Fishing
255,581
266,586
299,677
162,129
163,931
159,645
Industry
758,746
902,023
938,804
458,323
542,584
553,570
Asst.Prof.Teresita
Balgos )(
Services
878,880
946,658
1,003,268
514,316
534,468
2/15/2016
550,071
20th Century Trends

Large drop in % employment in
agricultural sector over century
Large drop in % employment in
manufacturing sector over end
of century
Farms have become more

productive, requiring less labor
Increases in population gravitate into the
non-farm sector, decreasing the percentage
remaining on the farm
Large increase in service sector

% employment
2/15/2016
The Income Side of Labor

Global Unemployment Rates
2/15/2016
Labor Force Participation Rate

% Adults in Labor Force
2/15/2016
Labor Force Participation Rate

Changes by gender:
More women have entered the labor force
Men staying as students longer, becoming retirees earlier and living longer, and
taking over homemaker responsibilities
2/15/2016
Determinants of Employment
1.
2.
3.
4.
5.
6.
7.
8.
Level of economic activity

Structural changes : change in the taste by consumer, new products
are introduced, domestic goods are displaced by imports, technical
changes
Change in occupation or residence
Instructional restrictions or barriers : minimum wage, restrictions to
entry by labor union
Seasonal industries
Labor composition
Educational attainment
Demographic factors
2/15/2016
DETERMINANTS OF DEMAND FOR LABOUR

Wage Rate
Productivity of Labour
Price of Output
Substitutability of Labour
with other factors of
production
2/15/2016
DETERMINANTS OF SUPPLY FOR LABOUR
The Number of births

The number of deaths
The number of people migrating in and out
of the area
The number of people who choose to stay
at home and look after for their families
The Number of people at school
The number of people in further education
The number of people who are retired
2/15/2016
Production Function
Demand for Labour : Derived Demand
The substitution Effect of Labour : if the
wage rate falls, employers will employ more
labour because it is cheaper
Q = f (K, L)
The Income Effect of Labour: if the wage

rate falls, employers will employ more
labour because it leaves more budget to
spend
2/15/2016
Wage Rate Determination In the Labour

Market
Demand
Supply
Equilibrium Wage Rate
Disequilibrium Wage Rate
2/15/2016
Equilibrium Wage Rates

Is the wage rate at which the quantity of labour demanded equals
the quantity of labour supplied
2/15/2016
Disequilibrium Wage Rate

The market wage is greater than
the equilibrium wage
Reasons ( excess supply of
labour, workers will be unemployed
because of the excess number of
workers thus wage rate will fall)
Workers realizing they are or may
become unemployed, will accept lower
wage rates, in an effort to make their
services more attractive to employers
Employers, realizing there are
unemployed workers, will offer to
employ workers at a lower wage rate
The market wage is lesser than

the equilibrium wage
Reasons ( excess supply of
labour, workers will be highly sought
after, because there is shortage of
workers)
1. Employers finding themselves unable
to employ as many workers as they
would like, will offer to employ
workers at higher wage rates in an
attempt to attract more workers
2. Workers, realizing they are being
sought after by employees, will
begin to ask for higher wage rates
for their services
2/15/2016
The market wage is lesser than the equilibrium wage
Only when the market wage rate equals to the

equilibrium wage rate is there neither excess
demand for labour nor excess supply of labour.
Hence there are neither unemployed workers or
shortage of workers
2/15/2016
Unemployment
2/15/2016
Key Issues
The meaning of unemployment

Different types of unemployment
Consequences of unemployment
Unemployment and economic growth
Recent trends in UK unemployment
Full employment
2/15/2016
Measuring Unemployment
A Working Definition of Unemployment
People able, available and willing to find work
and actively seeking work but not employed
The unemployed are included in the labour
force
An involuntary idleness on the part of

those who have failed to find
unemployment or who have lost their
latest jobs, but are able to work, and are
looking for work
2/15/2016
Measuring Unemployment
The Labour Force Survey (ILO measure)
An internationally agreed standard measure of
unemployment
Must have actively sought work in the previous
four weeks and be available to start work
immediately
Higher figure than the claimant count
approximately half a million higher
Higher because there are limits on who can
claim unemployment benefit so the true
level of unemployment is higher than the
official figures suggest
2/15/2016
LABOR FORCE and UNEMPLOYMENT

Labour Force- Population 15 years old and over who
contributes to the production of goods and services in
the country
Includes either employed or unemployed; and those
who are neither employed or unemployed
Participation Rate- The percentage of the entire
labour force population that makes up the labour force
Participation rate = Labour Force
x 100
Labour Force Population
Ex. In 1993 labour force was 13.946 million and the

labour force population was 21.392 million
65.2%
= 13 946 000
x 100
21 392 000
2/15/2016
The Official Unemployment Rate- The

number of unemployed people in the labour
force as a percentage of the entire labour
force
Ex. The 1993 Labour force of 13.946 people

was composed of 12.383 million people who
were employed and 1.562 million people
who were not.
Unemployment Rate = UELFR/Labour Force x
100
11.2%= 1 562 000 x 100
13 946 000
2/15/2016
TABLE 3.6 - Employed Persons by Region and Major Industry Group,

Philippines: 2012 - 2014 (Continued)
(Based on Past Week Reference Period; In Thousands)
REGION AND MAJOR INDUSTRY GROUP
Region VI - Western Visayas
Agriculture, Hunting and Forestry
Fishing and Aquaculture
Mining and Quarrying
Manufacturing
Electricity, Gas, Steam and Air Conditioning Supply
Water Supply; Sewerage, Waste Management and Remediation
Activtities
Construction
Wholesale and Retail Trade; Repair of Motor Vehicles and
Motorcycles
Transportation and Storage
Accommodation and Food Service Activities
Information and Communication
Financial and Insurance Activities
Real Estate Activities
Professional, Scientific and Technical Activities
Administrative and Support Service Activities
Public Administration and Defense; Compulsory Social Security
Education
Human Health and Social Work Activities
Arts, Entertainment and Recreation
Other Service Activities
Activities of Households as Employers; Undifferentiated Goods
and
Service-producing Activities of Households for Own Use
Activities of Extraterritorial Organizations and Bodies
2012
2013
2014
3,008
962
177
3,011
928
180
3,182
1,004
202
7
163
9
152
11
156
4
152
4
164
4
198
522
207
122
19
29
525
209
135
18
30
535
207
136
18
31
9
12
48
7
10
52
5
9
58
162
107
35
18
202
163
110
39
19
204
173
106
40
20
215
2/15/2016
45
-
42
-
44
-

PHILIPPINES
Manufacturing
Water Supply; Sewerage, Waste Management and Remediation Activtities
Construction
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
Education
Activities of Households as Employers; Undifferentiated Goods and
2012
37,600
10,660
1,432
250
3,112
89
59
2,232
6,864
2,617
1,571
338
437
170
189
937
1,958
1,200
438
328
2,149
2013
38,118
10,429
1,407
250
3,159
94
60
2,373
7,105
2,734
1,607
344
448
173
194
1,016
1,965
1,226
469
347
2,189
566
2
524
4
2014
a
38,651
10,405
1,396
239
3,212
86
51
2,578
7,248
2,686
1,694
352
491
168
209
1,085
1,964
1,254
480
349
2,187
2/15/2016
508
7
UNEMPLOYMENT :
ISSUES, DIMENSIONS, AND ANALYSES
Types of Unemployment
1. Normal Unemployment- Unemployment due to low or no demand for workers.
2. Frictional Unemployment- Unemployment due to being temporarily between jobs or looking for a
first job. It is a permanent feature of labour markets, represents about 3% of the labour force at all
times.
3. Structural Unemployment- Unemployment due to a mismatch between people and jobs. This type of
unemployment occurs because of gradual changes in the economy. Long term adjustments in what,
how, and where products are produced cause such unemployment.
4. Technological Unemployment- Unemployment due to technology
5. Cyclical Unemployment- Unemployment due to the ups and downs of economies and businesses,
causing unemployment to rise and fall.
6. Seasonal Unemployment- Unemployment due to the seasonal nature of some occupations and
Asst.Prof.Teresita
2/15/2016
industries Balgos )(
Flows in the Labour Market

Employed
Labour force
New hires
Recalls
Job-losers
Lay-offs
Quits
Discouraged
workers
Retiring
Temporarily
leaving
Taking
a job
Unemployed
Re-entrants
New entrants
Out of the
labour force
2/15/2016
2/15/2016
Philippines
Population 15 years and over (in 000)
January 2015a/ January 2014b/

January 2015c/
(Excludes Region (Excludes Region
(Excludes Leyte)
VIII)
VIII)
62,870
61,777
64,591
Labor Force Participation Rate (%)
63.8
63.8
63.7
Employment Rate (%)
93.4
92.5
93.4
6.6
7.5
6.6
17.5
19.5
17.9
Unemployment Rate (%)

Underemployment Rate (%)
2/15/2016
Unemployment Rates in Selected Asian Countries

TABLE 41 - Unemployment Rates in Selected Asian Countries: July 2014 - December 2015
COUNTRY
Indonesia
Malaysia
Philippines
Singapore
South Korea
Thailand
China
Periodicity
Semi-annual
Monthly
Quarterly
Quarterly
Monthly
Monthly
Quarterly
2015 p
2014
Jul
Aug
Sep Oct Nov Dec
Jan Feb Mar Apr May Jun
Jul
Aug
Sep
Oct
Nov Dec
5.9
2.8
6.7
2.0
3.4
1.0
4.1
2.7
3.5
0.7
-
2.7
3.5
0.8
-
5.8
3.0
6.6
1.9
3.4
1.1
4.1
6.2
3.2
6.5
2.0
3.7
1.0
4.0
3.2
3.6
1.0
-
3.2
3.5
0.8
-
3.1
5.7
2.0
3.4
0.9
4.1
3.4
0.9
-
2.7
6.0
2.0
3.5
0.8
4.1
2.7
3.4
0.6
-
3.0
3.5
0.6
-
3.2
3.9
0.8
-
3.0
3.7
1.0
-
3.0
6.4
1.8
3.7
0.9
4.1
3.1
3.9
0.9
-
3.1
3.9
0.8
-
Note: Data for other Asian countries cannot be found in the website used. If other website shall be used,
methodology may differ, thus, not comparable.
p Preliminary.
Sources of data: Philippine Statistics Authority,
Labor
Force Survey.Balgos )(
Asst.Prof.Teresita
http://www.tradingeconomics.com.
3.4
-
2/15/2016
Seasonal
Regular seasonal changes in
employment / labour demand
Affects certain industries more than
others
Catering and leisure

Construction
Retailing
Tourism
Agriculture
2/15/2016
Frictional
Transitional unemployment due to
people moving between jobs: Includes
people experiencing short spells of
unemployment
Includes new and returning entrants into
the labour market
Imperfect information about available
job opportunities can lengthen the
period of someones job search
2/15/2016
Structural Unemployment
Structural
Arises from the mismatch of skills and
job opportunities as the pattern of
labour demand in the economy changes
Occupational immobility of labour
Often involves long-term unemployment
Prevalent in regions where industries go
into long-term decline
Good examples include industries such as
mining, engineering and textiles
2/15/2016
Philippine employment structure
2/15/2016

PHILIPPINES
Manufacturing
Construction
Education
2012
37,600
10,660
1,432
250
3,112
89
59
2,232
6,864
2,617
1,571
338
437
170
189
937
1,958
1,200
438
328
2,149
2013
38,118
10,429
1,407
250
3,159
94
60
2,373
7,105
2,734
1,607
344
448
173
194
1,016
1,965
1,226
469
347
2,189
566
2
524
4
2014
a
38,651
10,405
1,396
239
3,212
86
51
2,578
7,248
2,686
1,694
352
491
168
209
1,085
1,964
1,254
480
349
2,187
2/15/2016
508
7
Cyclical unemployment
Cyclical (Keynesian)
There is a cyclical relationship

between demand, output,
employment and unemployment
Caused by a fall in aggregate
demand leading to a loss of real
national output and employment
A slowdown can lead to businesses
laying off workers because they
lack confidence that demand will
recover
Keynes argued that an economy
can become stuck with a low rate
of AD and an economy operating
persistently below its potential
2/15/2016
Cyclical unemployment using AD-AS

LRAS
General Price
Level
Real Wage
Level
Supply of
Labour
W1
W2
P1
P2
SRAS
AD1
LD2
AD2
Y2
Y1
Yfc
Real National Income
E2
Demand for
Labour
YFC2
E1
Employment of Labour
2/15/2016
Real Wage Unemployment

Real Wage Unemployment
Created when real wages are maintained above their market clearing level
leading to an excess supply of labour at the prevailing wage rate
Some economists believe that unemployment can be created if the national
minimum wage is set too high
2/15/2016
Recent examples of cyclical unemployment

Recession in the UK in the early 1990s
Unemployment rose from 1.6 million in 1989 to 2.9 million in 1993
The recent recession in UK manufacturing industry

Slow growth and rising unemployment in Germany
The end of full-employment for Japan during the last ten years
2/15/2016
Economic and Social Costs of Unemployment

The private costs for the unemployed
Loss of income
Fall in real living standards
Increased health risks
Stress
Reduction in quality of diet
Social exclusion because of loss of work and income
Loss of marketable skills (human capital) and motivation
The longer the duration of unemployment, the lower the chances of
finding fresh employment - the unemployed become less attractive to
potential employers
2/15/2016
Consequences of Unemployment (2)

Economic Consequences for Businesses
Negative consequences
Fall in demand for goods and services
Fall in demand for businesses further down the supply chain
Consider the negative multiplier effects from the closure of a major
employer in a town or city
Some positive consequences
Bigger pool of surplus labour is available but still a problem if there is
plenty of structural unemployment
Less pressure to pay higher wages
Less risk of industrial / strike action fear of job losses leading to
reduced trade union power
2/15/2016

Consequences for the Government (Fiscal Policy)
Increased spending on unemployment benefits and
other income related state welfare payments
Fall in revenue from income tax and taxes on
consumer spending
Fall in profits reduction in revenue from
corporation tax
May lead to rise in government borrowing (i.e. a
budget deficit)
2/15/2016

Consequences for the economy as a whole
Lost output (real GDP) from people being out of work the
economy will be operating well within its production frontier
Unemployment seen as an inefficient way of allocating resources
labour market failure?
Some of the long-term unemployed may leave the labour force
permanently fall in potential GDP
Increase in the inequality rise in relative poverty
2/15/2016
Policies to reduce unemployment

Demand and supply side approaches
2/15/2016
Demand side Policies to Reduce Unemployment

These are mainly measures to boost total labour demand (reduce cyclical
unemployment)
Lower interest rates (a monetary policy stimulus)

A lower exchange rate (helps exporters)
Lower direct taxes (fiscal stimulus to spending power)
Government spending on major capital projects (e.g. improving the
transport infrastructure)
Employment subsidies (including the New Deal programme) designed to
reduce the cost to a business of employing additional workers
Incentives to encourage flows of foreign investment in the UK
particularly in areas of above average unemployment
2/15/2016
Supply-side policies to reduce Unemployment

Supply-side policies
These are measures to improve labour supply (reduce frictional and
structural unemployment)
Increased spending on education & training including an emphasis
on lifetime-learning)
Improved flows of information on job vacancies
Changes to tax and benefits to improve incentives
Measures designed to make the labour market more flexible so that
workers have the skills and education that gives them improved
employment options
2/15/2016
Consequences
of
falling
unemployment
The circular flow and the multiplier:
Incomes flowing into households will grow
Falling unemployment adds to demand and creates a positive
multiplier effect on incomes, demand and output.
The balance of payments:
When incomes and spending are growing, there is an increase in the
demand for imports. Unless this is matched by a rise in export sales,
the trade balance in goods and services will worsen
2/15/2016
Consequences of falling unemployment

Government finances:
With more people in work paying income tax, national insurance
and value added tax, the government can expect a large rise in tax
revenues and a reduction in social security benefits
Inflationary effects
Falling unemployment can also create a rise in inflationary pressure
particularly when the economy moves close to operating at full
capacity
However this is not really a risk when the economy is coming out of
recession, since aggregate supply is likely to be highly elastic
because of a high level of spare capacity
2/15/2016
Falling unemployment in the UK

Demand factors
Sustained economic growth since 1992

Growth creates jobs to replace jobs lost in industries suffering from long
term decline
High levels of inward investment from overseas
Strong consumer demand and housing boom
Supply factors
Extra investment in education and training

Britain now has a more flexible labour market than in the past workers
have more adaptable skills
Employment laws have changed easier for firms to take on extra workers
E.g. growth of temporary and part time employment
2/15/2016
Falling unemployment
Sustained economic
growth since 1992
Growth of service sector

has created many new
jobs
Foreign direct investment
The full-employment
New Deal helping to

lower long-term
unemployment
Flexible labour market

easier to create new jobs
Increased spending on
education
2/15/2016
Unemployment Misses ...

(1) Discouraged and other marginally attached workers who want to work and have
given up looking for a job
(2) Individuals who are employed, but for less hours than desired during a week
Taking these workers into account, the unemployment rate in August, 2002
would increase from 5.7% to 9.5%
2/15/2016
Can We Have 0% Unemployment?

Economists believe that it is not possible
Natural rate of unemployment: the normal rate of unemployment due to built in
frictions and structures in the economy
2/15/2016
Frictional Unemployment
Frictional unemployment: Unemployment caused by the time it takes for

workers to search for the best job
2/15/2016
Minimum Wage
We know from microeconomic theory that this is a price floor

Quantity labor supplied exceeds the quantity of labor demanded
2/15/2016
Minimum Wage
Price is wage, firms demand labor
2/15/2016
Unions
Perfect Competition: Many sellers, many buyers. No market

power.
Monopoly: One seller, many buyers. Seller has market power
Monopsony: One buyer, many sellers. Buyer has market power to
drive the price down
2/15/2016
Unions
Unions can be seen as negatively colluding to gain

market power in a manner similar to firms trying to sell
their products.
In the presence of monopsony (one firm buying all the
labor), unions are often needed to group workers into a
single entity (monopoly) and thus shift some market
power back to the workers.
2/15/2016
Efficiency Wages
Efficiency Wages: paying workers higher wages than the

equilibrium amount in order to retain employees and receive a
better effort. Creates similar inefficiencies to a price floor.
2/15/2016
2/15/2016
2/15/2016
2/15/2016

Manufacturing
Water Supply; Sewerage, Waste Management and Remediation
Activtities
Construction
Wholesale and Retail Trade; Repair of Motor Vehicles and
Motorcycles
Education
Activities of Households as Employers; Undifferentiated Goods
and
2012
2013
2014
3,008
962
177
3,011
928
180
3,182
1,004
202
7
163
9
152
11
156
4
152
4
164
4
198
522
207
122
19
29
525
209
135
18
30
535
207
136
18
31
9
12
48
7
10
52
5
9
58
162
107
35
18
202
163
110
39
19
204
173
106
40
20
215
2/15/2016
45
-
42
-
44
-

PHILIPPINES
Manufacturing
Construction
Education
2012
37,600
10,660
1,432
250
3,112
89
59
2,232
6,864
2,617
1,571
338
437
170
189
937
1,958
1,200
438
328
2,149
2013
38,118
10,429
1,407
250
3,159
94
60
2,373
7,105
2,734
1,607
344
448
173
194
1,016
1,965
1,226
469
347
2,189
566
2
524
4
2014
a
38,651
10,405
1,396
239
3,212
86
51
2,578
7,248
2,686
1,694
352
491
168
209
1,085
1,964
1,254
480
349
2,187
2/15/2016
508
7
TABLE 10.2 - Labor Productivity by Region and Sector,

(In Pesos)
At Current Prices
MAJOR INDUSTRY GROUP

Agriculture, Hunting, Forestry
and Fishing
2012 r
2013 r

2012 r
2013 r
2014
####### ####### #######
85,834
88,646
87,964
101,844 107,253 104,860
57,130
56,664
50,837
2014
Industry
230,410 248,654 261,335 138,223 148,746 151,182
Services
153,987 164,208 173,525
95,852
98,309 100,934
2/15/2016
TABLE 10.1 - Labor Productivity Measured in Terms of Gross Domestic

Product
Per Employed Person, Philippines: 1998 - 2014
(In Pesos)
YEAR
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012 r
2013 r
2014
At Current Prices
110,877
116,942
130,435
133,379
139,656
148,461
161,972
175,711
192,155
205,385
226,493
228,919
249,854
261,033
280,880
302,804
327,100

124,926
123,619
130,435
126,366
127,026
130,846
135,291
138,683
144,510
149,830
153,630
151,086
158,222
158,911
167,692
177,084
185,351
Notes: 1. Labor Productivity of the country is measured as the

ratio of Gross Domestic Product (GDP) to corresponding average
employment
for the year.
2. Labor productivity data for 2014 were computed 1/1
using employment data which excluded that of Leyte province.
3. Employment data used for 1998 - 2005 were based on the 1995
census-based population projections, while 2006 onwards were based
on the 2000 census-based
population projections.
r Revised.
Sources of basic data: Philippine Statistics Authority, National
Accounts of the Philippines and Labor Force Survey.
2/15/2016

Labor, Employment &amp; Unemployment.2016mid

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LABOR, EMPLOYMENT &

Labor, Labor Force, Employment, Labor Market

Labor is one of the resources used in

The Production Side of Labor

TABLE 10.2 - Labor Productivity by Region and Sector,

At Constant 2000 Prices

Agriculture, Hunting, Forestry and Fishing

National Capital Region

Agriculture, Hunting, Forestry and Fishing

20th Century Trends

Farms have become more

Large increase in service sector

The Income Side of Labor

Labor Force Participation Rate

Labor Force Participation Rate

Level of economic activity

DETERMINANTS OF DEMAND FOR LABOUR

DETERMINANTS OF SUPPLY FOR LABOUR

The Number of births

The Income Effect of Labour: if the wage

Wage Rate Determination In the Labour

Equilibrium Wage Rates

Disequilibrium Wage Rate

The market wage is lesser than

The market wage is lesser than the equilibrium wage

Only when the market wage rate equals to the

The meaning of unemployment

An involuntary idleness on the part of

LABOR FORCE and UNEMPLOYMENT

Labour Force Population

Ex. In 1993 labour force was 13.946 million and the

The Official Unemployment Rate- The

Ex. The 1993 Labour force of 13.946 people

TABLE 3.6 - Employed Persons by Region and Major Industry Group,

TABLE 3.6 - Employed Persons by Region and Major Industry Group,

Flows in the Labour Market

Population 15 years and over (in 000)

January 2015a/ January 2014b/

Labor Force Participation Rate (%)

Employment Rate (%)

Unemployment Rate (%)

Unemployment Rates in Selected Asian Countries

Sep Oct Nov Dec

Jan Feb Mar Apr May Jun

Catering and leisure

Philippine employment structure

TABLE 3.6 - Employed Persons by Region and Major Industry Group,

There is a cyclical relationship

Cyclical unemployment using AD-AS

Real National Income

Real Wage Unemployment

Recent examples of cyclical unemployment

The recent recession in UK manufacturing industry

Economic and Social Costs of Unemployment

Consequences of Unemployment (2)

Consequences of Unemployment (3)

Consequences of Unemployment (3)

Policies to reduce unemployment

Demand side Policies to Reduce Unemployment

Lower interest rates (a monetary policy stimulus)

Supply-side policies to reduce Unemployment

Consequences of falling unemployment

Falling unemployment in the UK

Sustained economic growth since 1992

Labor, Employment & Unemployment.2016mid

Labor, Employment & Unemployment.2016mid