Question

1. Why do we have to measure unemployment?
2. How and why minimum-wage laws cause unemployment in the economy?
3. Is trade unions are good or bad for economy?
4. Comment “not all the adults are willing and able to work”
5. In terms of loss of jobs, which sector in Kuwait likely to be affected most? Why?

Answer 1

Measure of unemployment:

This show us the data of poverty income level gdo contribution of different group if people, status of economy and helpful for better forecast of future of economy as well as policy formulation for welfare of people

Minimum wage law create unemployment :

This create unemployment as business operation cost increase .

1) minimum wage law may lead to increase cost of Operation of business thus they promote to use technology rather than manually work by employees .

2) it may promote contract labor force as they may be hire and fire at any time and their operation cost is low in compare to organize work force.

Trrade union are

good: 1) they are good for promote Democratic values within the trade organization.

2) they are promoting rights and good health , working conditions for employee.

3) trade union are act as pressure group and helpful to make policy in favor of employees.

Negative:

1) strike protest etc sometimes can create loss or damage to public property and may lead to violence sometimes

2) operation of business or trade stop will loss for economy and also incredible cost pull inflation as supply stop.

3) some time these have politically motivated and thus bad in each dimension fir democracy and individual as try to reduce competition through such bad culture of strike (politically)  

About adult:

1) some are under 14 age and child labor provision are applicable for them.

2) some may not have required skill and knowledge as well as social or economic outreach to do work.

3) some are not Will to work as they have strong economic background and wants to be self entrepreneur as well as some want to become government employees.

Kuwait: labor force intesive work like construction and manufacturing is affected mostly after term of loss job as Kuwait have lower population dividend as well as depends on foreign workers .