If unemployment rises in a country, will its standard of living necessarily decline?
Unemployment refers to the condition and extent of joblessness within an economy, and is measured in terms of the unemployment rate, which is the number of unemployed workers divided by the total civilian labor force. If unemployment rises in a country it will affect the country’s standard of living in a negative way, take Jamaican economy for example, approximately 65% of the labour is unemployed, so if 65% of the population is not earning an income /income is not being generated then there is going to be a fall out in the economy which will result in recession and also the GDP will decline. If unemployment continues to increase the standard of living will defiantly changed the way how individual(s) make certain decision. In terms of how are they going to support themselves and families or what can they do to generate funds in their pockets.
In the Jamaican economy unemployment levels are increasing dramatically . There are several causes behind this increasing rate. But the main reason for the high level of unemployment is technological progress. In a fewer year far less working hours are needed to produced all the goods that are required, hence there will be less demand of labour. This can lead more to the raise of unemployment ratio. On the other hand, traditionalism, ignorance and over population etc are some other major cause that led to the raise of unemployment. Today, unemployment data are useful for a variety of reasons. The government use unemployment along with other labour market indicators for macro-economic and labour market management. Data are also supplied to a range of international organizations such as the European Central Bank. In the social policy domain, unemployment is used as an indicator of relative hardship.
Today, unemployment is the major crisis worldwide, to keep check on it is very much essential, it is you, who can change the word...
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