Unit 4: Business Cycles and Concepts
An employee of the World Bank has been asked to research unemployment concerns in Chile and to write a report of his/her findings. The employee has been asked to research data sets for unemployment and state the relationships between unemployment and Chile’s economy. The employee must answer what trends he/she finds in the data sets and to support those trends with statistical evidence.
In today’s economic turmoilone only needs to look at Chile to gain a better view. According to www.thisischile.cl the country is ranked second according to the Economic Climate Index (ICE). Chile is ranked second after Brazil in Latin America. Chile has reached a 7.8 ICE score a vast improvement over the 1990 score of 2.9. According to the New York Times (2011) “Chile is home to the world's largest copper producer.” Chile also produces wines and fruit with agriculture accounting for 15 percent of Chile’s total exports.
As stated by Krugman & Wells (2009) “Unemployment is the number people who are actively looking for work but aren’t currently employed.” Krugman & Wells (2009) also states that “The unemployment rate is the percentage of the total number of people in the labor force who are currently not unemployed.” A country’s economy has a direct effect on the unemployment rate. If the economy is good unemployment rates are usually low, if the economy is bad the unemployment rate is usually high.
Chile is currently enjoying a stable economic climate with unemployment numbers reaching an all-time low of 7.4 percent. This is down from a historical high of 11.60 percent in 2009 and a record low of 8.50 percent in 2010. The unemployment concerns relate directly to a countries economy. When the unemployment rate is low it is relatively easy to find work when you are actively looking for employment. Of course when people are employed they feel more secure, so they feel better about...