KUALA LUMPUR, May 26- The unemployment rate in the country for March 2014 was at 3.0 per cent, comparatively lower from 3.3 per cent in March last year , the Statistics Department said.
When compared with the previous month, the rate was down 0.2 percentage point from 3.2per cent in February 2014.
In a statement here today ,the department also said the labor force participation rate decreased in March 2014 to 66.9 per cent from 67.4 per cent in the previous month.
“A reduction of 0.5 percentage point was the impact of the decline of the population in the labor market by 0.3per cent (43,800 persons).
“Year-on-year comparison showed that the labor force participation rate was 1.4 percentage point higher than 65.5 per cent in March 2013,”it added.-Bernama.
THE ANALYSIS OF UNEMPLOYMENT RATES IN MALAYSIA
ECONOMIC CONCEPT :
Unemployment rates
THEORY :
Inflation & Unemployment
PROBLEM OR ISSUE :
Unemployment rates in Malaysia
Unemployment takes place when people have no jobs and there are willing to work and searching the work.
The rate of unemployment will increase when there I decline in the economy, but unemployment also happens when the economic report of 2013 published unemployment rate rose to 3.3 per cent in March last year compared with 3.0 per cent this year 2014.
We can see above article that the percentage of labor force and unemployment rate of 2014 is less than compared to last year ,2013.Thus, the unemployment rate also decrease on 2014.
In this type of unemployment ,the labor force is employed at times and unemployed at other times. It will arise due to a seasonal variation in the activities of particular industries.
The causes of unemployment is high population growth, lack of workforce information and business cycle.
When the economy is stable, Aggregate demand is high, while the unemployment rate will be low.
If the economy is unstable or in recession production falls as more labor has to stop working and become unemployed.
The effects of unemployment ruins in economic growth . High unemployment rate will ruin the economic growth and performance, the high rate of unemployment and sluggish activities of firm will result in a reduction in their profits.
The low profits will reduce the eagerness of inventors to make new inventors. This will effect national economic growth. The factor of other effect is drop in gorvement revenue
You May Also Find These Documents Helpful
-
Unemployment are people who do not currently have a job but are actively looking for a job. The unemployment rate is the percentage of people in the labor force who are unemployed. There are three basic types of unemployment. The first is a cyclical which is the result of fluctuations in real GDP. Unemployment rises when the real GDP falls, and falls when the economy improves. The second is Frictional unemployment which occurs naturally in the economy. It refers to the time it takes to find an appropriate job. And the third is Structural unemployment which refers to the mismatch between job openings and the skill of workers seeking jobs.…
- 1088 Words
- 3 Pages
Good Essays -
When a person in the United States has been actively looking for a place of employment and cannot find an employer, then they are categorized as unemployed. Now the unemployment rate is put into percentages as the total available work force seeking employment. Unemployment in the United States were at a high of 15.4 million is October 2009 and now sits at 12.5 million in April 2012. So for about 3 years as the U.S tries to fight through the hardship of the low economy the unemployment has not drop that significantly. What really has a strong impact on the unemployment in a country is supply and demand. When the U.S economy took a drop the demand for certain thing also falls with it as people become more conservative. This also hurts the work of employment because if people buy less then there is need to also make less of whatever is not being…
- 658 Words
- 3 Pages
Good Essays -
It has been going on five years since unemployment has been such a factor in the United States. The unemployment rate is defined as the percentage of people in the economy willing and able to work but are not working. This statistic is a little deceiving, as it does not take into account the people who have given up looking for work. Given that caveat, experts believe that the number of people out of work is significantly higher. The Bureau of Labor Statistics (BLS) reports the unemployment rate on the first Friday of each month. It is useful to compare this month 's unemployment rate to that of the same month last year. This rules out the effects of seasonality (Amadeo, 2011). Unemployment is known as a lagging indicator. The effect of economic events, such as a recession, and so occur after the said economic event has already started. That means the unemployment rate will continue to rise even after the economy has started to recover, as employers are reluctant to lay people off when the economy turns bad. In turn, companies are even more reluctant to hire new workers until they are sure the economy is well into the expansion phase of the business cycle. For that reason, the unemployment rate is a powerful confirmation of what the other indicators are already showing. The current unemployment rate as of the end of January was 8.3% and…
- 1429 Words
- 4 Pages
Better Essays -
The Unemployment rate in the United States is currently 6.7% as of December 2013. This rate is lower than November due to the many holiday jobs that were created. In January it is predicted to go back up since the people that have lost their jobs due to a short term holiday work season. The rate will go down again once the warmer weather of spring and summer arrives due to the seasonal work of construction and landscaping businesses. The unemployment rate will continue to fluctuate due to the seasonal work but it will also increase as we lose businesses due to the tough economic conditions. Many employers are laying off workers or closing their doors due to many regulations that have been passed by our government. A lot of employers have had to cut down on their workforce due to a higher cost to do business and cost of healthcare. In the long outlook of this situation if healthcare costs are not lowered more businesses will be leaving the United States or just closing their doors. This will drive up the unemployment rate again. The forecast for jobs leaving the United States keeps growing the more that companies need to…
- 1239 Words
- 5 Pages
Better Essays -
The unemployment rate steadily has declined over the last three years; there was a difference of 1.6% from July 2011 to July 2013. In July 2011 the unemployment rate was at 9% while in July 2013 it was reported at 7.4% so there was a decline of 1.6% (Bureau of Labor Statistics: The Employment Situation, 2013). The unemployment rate lowering over the last three years has been a positive thing for the United States economy because it means more jobs were created in 2013 and thus more people are working. The positive upturn in the unemployment rate would means that the household income has increased and there is more spending money power available. Even though there is some positive feedback in the unemployment rate numbers there are still other issues that affect the economy and still need to be dealt with like the government budget cut, which could produce more businesses taxes. The economy is on a slow but steady up-swing do to job creations, which has caused the unemployment rates to lower for the last three years. Some job markets have created new jobs like the retail and service market but other have not improved at all like the manufacturing and health care markets. The important thing is that there are more…
- 1636 Words
- 7 Pages
Good Essays -
In the United States, the current unemployment rate is down to 7.7 percent according to the U.S Bureau of Labor Statistic. The current number of unemployed persons is at about 12 million. This number has changed very little in the last year. Employment has increased in health care and retail.…
- 486 Words
- 2 Pages
Good Essays -
The rate shows how many people that are not currently working, so if in 2013 there are an 8% unemployment rate, which means 8% of the population are collecting unemployment. This rate defiance how strong or week the economy is at a point in time. If the rate in 2013 is 8% and in 2014 is 6%, this shows the government that the economy is improving…
- 967 Words
- 4 Pages
Good Essays -
Unemployment and inflation have many different causes and the levels of have had severe fluctuations over time. Unemployment and Inflation can be caused by many different things but normally they follow the business cycle with high inflation in times of boom and high unemployment in times of recession. The government can use two different policies to either expand or contract economic activity resulting in low or higher inflation or unemployment.…
- 713 Words
- 3 Pages
Good Essays -
Unemployment in the United States fell to 8.1% from 8.3% in July. U.S. employers are said to have added 96,000 jobs in July (KSL News, Sept) . According to reports from the department of workforce services the decrease in the unemployment rate was not because of new jobs but rather from people not looking for work. In order for a person to be counted as part of the unemployment rate they must actively be seeking work. The unemployment rate does not give an accurate rate of all people out of work.…
- 1959 Words
- 8 Pages
Good Essays -
Unemployment level: As you can see from the graph the unemployment level has increased from 1.64 million in July 2007 to 2.59 million in July 2012, in five years the unemployment level has raised by nearly one million of unemployed people.…
- 2580 Words
- 11 Pages
Powerful Essays -
Unemployment rates fluctuate when the supply and demand for human resources are out of balance. The supply and demand are a result of the interaction of economic, policy and structural factors. Economic factors affect both supply and demand. The demand for goods and services increases production which results in the demand for workers, increasing the employment rate. The common thought among economists is that market-driven economies move in cycles and when they drop below certain levels unemployment may result. The moving of production from high wage countries to low wage countries is another factor that increases unemployment. A declining manufacturing sector will result in not enough jobs to go around along with third world competition. While new jobs are being created in the technology and service sectors it is not enough to make up for the amount of jobs that have been lost due to moving the manufacturing of goods out of the U.S.…
- 1095 Words
- 4 Pages
Good Essays -
Currently, our country is in a recession, and the unemployment rate is at an all-time high. The unemployment rate consists of people not only out of work but also those who can work and are actively looking for work (Colander, 2010). Unemployment also means there are more people out of work than there are jobs available (Colander, 2010).…
- 1396 Words
- 6 Pages
Better Essays -
Unemployment is one of the principal macroeconomic problems facing the United States economy. This implies that the economy is not operating under full employment. United States has been experiencing a high level of unemployment in the past. However, in the recent past the United States unemployment has fallen down to 7.7 percent as per statistics this year in the month of November. This is the lowest unemployment rate United States labor department has recorded in the past four years. According to a report by the labor department, about 146000 jobs were added in the economy. This resulted to the unemployment rate falling from 7.8 to 7.7 percent. The fall is largely attributed to the fact that most households stopped looking for employment opportunities in the economy (Zhang, 1).…
- 572 Words
- 3 Pages
Good Essays -
When the demand for and supply of employment are allowed to function in a free market economy and settle at equilibrium, some unemployment occurs as a normal function of the economy (Rittenberg & Tregarthen, 2011). During periods of recession, unemployment tends to increase cyclically as firms defer current demand for forms of capital, including human capital, due to low consumption. As the period of recession ends, despite a typical minor influence of frictional unemployment, unemployment usually decreases back to the natural level for that time period as firms begin increasing demand for human capital through increased hiring (Rittenberg & Tregarthen, 2011).…
- 301 Words
- 2 Pages
Good Essays -
Coy, P. (2009, February 9). 598,000 Jobs Lost in January. Business Week Online , pp. 12-12.…
- 1267 Words
- 6 Pages
Powerful Essays