The Economy of Venezuela

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The economy of Venezuela is surprising well for a South American country. Typically, when you think of the economies of South American countries you think that they are poor and dismal with high unemployment rates and squander. However, Venezuela has an upper middleclass economy due to the oil production of the country. In fact, oil revenues account for approximately ninety-five percent of export revenue for the entire country. Oil is also twelve percent of Venezuela’s gross domestic product, or GDP. (Index Mundi, 2013) The unemployment rate of Venezuela is not relatively steady. The part of the year with the lowest unemployment rate tends to be November and December, with the percentage skyrocketing in January, which is the highest point of unemployment all year. (Trading Economics) The definition of unemployment in Venezuela is a little bit different than in the U.S. First of all, the labor age is lower, at fifteen years old for full time labor as opposed to eighteen, in the U.S. Also, when unemployment statistics are taken, they count everyone, age fifteen or over who are currently not employed, but seeking employment, whether or not they have been employed previously. (Bloomberg) In the U.S., only people who have been previously employed, are able to work and seeking employment are counted in the unemployment rate. Comparatively, Venezuela’s unemployment rate is lower than the U.S., averaging 7.9% over the last 24 months(Trading Economics) whereas the U.S. unemployment rate averaged 8.3% over the past 24 months. (Bureau of Labor Statistics Data) The Venezuelan unemployment rate is not as steady as the U.S.’s. This is mostly because a anyone actively seeking employment, but not employed is considered unemployed, so anytime someone looks for a job the unemployment rate goes up, whether they have been employed or not. I think this also is the most prominent factor in why the unemployment rate in Venezuela is so high; it does not have as much to do with...
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