Question

unemployment and employment over the last 10 years. report

Answer 1

Among the core reasons for an economic progress for a country to take place, reducing the rate of unemployment is on the top of the list. This is because with unemployment in the country a lot of associated problems such as low aggregate or total demand for goods and services, lower consumer choices and innovation and lower income levels come into the country.

As economies struggle to make any progress and suffer primarily because of lack of money, unemployment is a real time problem which needs to be tackled, and as a matter of fact has well been targeted by all sections of the world economy.

Since the last 10 years, the focus of the world has rapidly shifted to that of a globalized economy, wherein tariffs or taxes are reduced as far as possible for international trade. The result of this is that manufacturing ability and innovation is at its peak.

Companies rival internationally to produce better products for its customers and at volumes which were never heard of earlier. The end result of this is that unemployment across all major countries has been declining sharply.

It is important to know, that unemployment refers to those sections of the society, which are in search for a job but are unable to find one for themselves. As the world economy has embraced the idea of increased production and lower taxes for itself, the global production of goods and services has increased leading to better paying jobs and lesser unemployment.

The world bank regularly publishes its reports on unemployment across the globe which reflected that from 6.3% in early 2010, it reduced to 5.2 in 2020. Though this may just seem like a 1 percent reduction, we need to accommodate the fact that the world economy in terms of its population size has grown many folds during this period and still we have been able to control unemployment to a wide extent.

Further, as emerging economies such as India and China which earlier were the epi centres of economic slowness and unemployment embraced the growth path, a vast majority of the world population which resides in these countries was exposed to the international markets, which saw a gradual decrease in unemployment and healthy overall growth rates of 5-10% annually which cause much reduction in both domestic as well as international rates.

These countries also increased their expenditure on critical areas such as Industrialization, Education, Health care and nutrition which contributed towards making them more self-reliant in production and with increased production came increased spending capacity, better life style and overall aggregate demand rose and so did employment opportunities over the last ten years or so.

Please feel free to ask your doubts in the comments section if any.