The Expected Problem of Unemployment in Global Economic Slowdown & the Plan to Overcome the Problem.

Topics: Unemployment, Recession, Macroeconomics Pages: 9 (3064 words) Published: April 27, 2013
Chapter 1 1.1 Introduction Global economic slowdown a situation in which GDP growth slows but does not decline. For example, if GDP goes from 5% growth to 3% growth, an economy is experiencing a slowdown (, 2012). Most analysts do not consider a slowdown to be a recession, as global recession is a decline in a country's gross domestic product (GDP) growth for two or more consecutive quarters of a year, it also preceded by several quarters of slowing down (Global Recession, 2012). Besides, global recession is the result of reduction in the demand of products in the global market (RashmiVerma, 2012). Slower growth in high-income countries is likely to result in weaker but still solid developing country growth – including under a mild U.S. recession scenario. Although financial turmoil has so far proved manageable and the growth in the US hardly recovered, but whatever recovery it had achieved now appears shaky and it remains a serious risk for several vulnerable developing countries (Nambiar, 2012). Based on Kaiser, and Wroughton (2012) IMF warns global economic slowdown deepens. The IMF said the global economic slowdown is worsening as it cut its growth forecasts for the second time since April and warned U.S. and European policymakers that failure to fix their economic ills would prolong the slump (Kaiser, and Wroughton, 2012). Economic problems are no longer confined to Europe and North America as China and India see worrying slump in growth (Fears of global economic slowdown weigh on emerging markets, 2012) This would be a new and worrying development. Unemployment is particularly high during a slowdown and it corresponds directly to a loss in GDP. Besides, productivity tends to fall in the early stages of economic slowdown, and then rises again as weaker firms close and causes the variation in profitability between firms rises sharply (Kaiser, and Wroughton, 2012). The living standards of people rely on wages and salaries are more affected by economic slowdown than those who rely on fixed incomes or welfare benefits (Kaiser, and Wroughton, 2012). The loss of the work is known to adversely impact on the stability of the family and individual health and tranquillity.


1.2 Problem of Statement The purpose of this research is to investigate the perceptions of students from UEL towards the expected problem of unemployment and their expectation towards the future career in global economic slowdown and to realize the problem, come out with some plan to overcome the obstacles for their future career. A student might not really observe the problem that bring by the global economic slowdown regarding with their future career, as they are going to enter the labour market in one day, so, it is important for them to familiar and get the knowledge before they actually start to find a job. 1.3 Research Objectives a) To determine the expectation of UEL students towards their future career in the global economic slowdown. b) To determine whether modules provided by UEL courses prepares students for their future career. c) To examine the importance of management trainee program for unemployment. 1.4 Research Question a) What are the expectations of UEL students towards their future career in the global economic slowdown? b) Do the UEL modules prepare students for their future career? c) Is the management trainee program important for the unemployed? 1.5 Significance of the study This small scale research seeks to investigate the problem of unemployment that student expect to face in their future career and to determine the general feeling of the students completing the UEL programs, to gauge their level of expectation and anticipation for their milestones into job market. Students should be aware of whether the modules from the degree which they currently taking are sufficient for them as a basic knowledge or well prepared them to enter the labour market in global...
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