Question

COUNTRY CHOSEN: BURKINA FASO

Analyze the country Burkina Faso current 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

1. The unemployment rate of Burkina Faso is expected to turn around 6.00 percent in 2020. This Sub-Saharan country is heavily dependent on agriculture and 80% of the people are engaged in it.

2. Since 1985, the highest rate of unemployment is 6.50 percent and the lowest rate of unemployment was 0.90. In 2017, it's 6.30 which decreased from 6.40 in 2016.

3. In this country, the number of people looking for a job currently as a percentage of the labour force turns out as a rate of unemployment. The labour force doesn't include people who are not at all looking for a job, retired people and the children.

4. Business cycles:

i. Expansion is which turns out to increased rate of employment, economic growth, etc.

ii. Peak is where there will be employment above full employment and the economy is in it's maximum output.

iii. Contraction is the result of Peak where there will be decrease in the output and also in the employment rate.

iv. Trough is obviously the bottom phase of the economy where everything will be at its least.

5. The US unemployment rate fell to 3.60 percent in 2019 from 3.90 percent in 2018. The business cycle of the aforesaid economy is in Expansionary phase since 10 years due to Trough in 2008.