The text discuss unemployment rate as a measure of economic performance. Another way to gauge economic performance is to count the number of jobs or number of people employed in the economy. Discuss the differences between these two measurements of job creation. Is either measurement better than the other?
- The unemployment rate measures the number of workers who are at least 16 years old, who are not working and who have been trying to find a job within the past four weeks and still haven’t found one. - To count the number of job or number of people employed in the economy (productivity) is to measure the quantity of goods and services that human and physical resources can produce in a given time period. These two measurements of job creation are all important to economic performance. But I think count the employment is much better than measure unemployment. - High unemployment results in an increase in unemployment benefits and government spending on social programs. It can also result in increases in mental stresses and physical illnesses and can bring on increases in crime as well. It’s costly for business to lay off workers and hire and train new employees. If the unemployment rate drops too low, the concern is that more workers have increases buying power and spend more, which ultimately causes prices to increase, resulting in a higher inflate on rate. - Higher productivity numbers often result in lower costs and lower prices. Increasing productivity means that the existing resources are producing more, which generates more income and more profitability. Measuring productivity is much better because faster job creation increases a country's output, and, among other things, raises the ratio of workers to pensioners, thereby lowering the cost of its social safety net. Besides, the insights gained from studying unemployment do not necessarily hold up when the focus shifts to job creation. Strong systems of job protection appear to have a big effect in...
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