Question

Locate a recent article (published within the last year) that addresses the unemployment theory and unemployment rate of your selected country. Analyze your selected country's unemployment rate and how the key economic indicators align with the current phase of the business cycle. Include the following in your discussion.

• Identify how unemployment is calculated.
• Describe the different types of unemployment and state which type of unemployment you believe impacts your chosen country the greatest.
• State your selected country's unemployment rate.
• Discuss the four phases of the business cycle.
• Align the current phase of the business cycle with your selected country.

Answer 1

The recent article published about unemployment rate in India is “In the Midst of Words Inside Out; Pandemic Rhetoric’s” by William C and Ida Friday. This journal explain about the unemployment tend in the midst of COVID 19.
India’s current unemployment rate is 23.5 percent by May 202. There is a huge fall in the urban unemployment rate. The unemployment rate in India is estimated through interviewing a large sample of randomly selected households. The major indicators of business cycle are interest rate, exchange rates, price of gold, stock market, inventory rates, building permits, unemployment rate etc. Among this there is a huge fall in the unemployment rate. This leads to fall in the business cycle. At the present condition our country moving to the hands of recession. There is huge fall in the unemployment rate in the migrant workers. This badly affects the living condition of the workers in urban areas.
The unemployment rate is calculated by dividing the total number of employed people by the total adult population, and taking its percentage.
Unemployment rate = * 100
Types of unemployment:
1. Cyclical unemployment: There is loss job due to the downturn in aggregate demand. The ups and downs in the business cycle lead to the cyclical unemployment.
2. Structural unemployment: The unemployment occurred due to the structural changes. The jobless workers in the manufacturing sector by implementing large scale machines are one of the best examples.
3. Regional unemployment: The unemployment in remote areas, this is mainly due to structural unemployment.
4.Seasonal unemployment: Some industries were worked only in some seasons. This unemployment can be seen in farming, tourism and construction sector.
5.Frictional unemployment: The workers loss their current job and searching for another one.
Among this most important unemployment relevant in our economy is cyclical unemployment. Our economy is moving towards a recession. So the unemployment occurred during this period are cyclical unemployment.
There are six major phases of business cycle;
Expansion; increase in the employment level, income, output, wage, profits, demand and supply of goods and services. Here the velocity f money supply is very high.
Peak; the economy reaches its saturation point. Te maximum limit of growth attained at this point. Consumer tried to restructure its budget constraint.
Recession; the stage which follow the recession. The demand and supply were starting to fall down. The producers do not notice about the fall in demand. Thus there is excess supply in the market. All the positive indicators stared to fall down.
Depression; High rate of unemployment. The growth continuously declined.
.Recovery; Economy started to recover from the depression. The economy shows a positive attitude towards employment and investment.
At present our economy is in the stage of recession. There is fall in employment rate. And also the demand for and supply of goods and services fall down.