Unemployment in Global Recession Scenario
Introduction Today, a global recession has become a biggest threat to world. Due to this global recession, it is a macroeconomics crisis. In last few years, unemployment has become a serious and top most problem in many part of the world. Also increased globalizations have put more employee job into risk. The under developing countries like India, china are facing their bad time. Emerging economies like China and India are affected by the negative influence of the US Subprime Market Crisis.
By reducing the demand for labor we can bring economic downturn, but it tends to increase the unemployment level in the formal sector and bring the wages charge down. It means the poverty rate is increasing and as well as the unemployment is also increases at the same rate. Such both effects try to tend the unemployment and poverty in formal economics.
Thus recession works into two ways, directly or indirectly. Directly, in this scenario it decreases the wages of employees and it creates more jobless employees it means more number of poor in formal economy. In directly in this scenario it brings wages down those already employed in formal economy.
In other word when the economy is passing through in a recession scenario the GDP rate will be high. The goods, service and product demand would be low. When demand of the product would be low the consumer expenditure also will be low. When demand will be low the production will be low. It means less production less no employment required. It means a gap between supply and demand processes. Due this global recession all companies are very worried about the future thought out the world. They think they are also concerned whether they will be able to recruit and keep the best people to run their business.
Unemployment rate is the per cent of civilian labour work force activity looking for work but unable to find a job. The unemployment consist of three types of people first who are fit for the job but are not getting a job,
By reducing the demand for labor we can bring economic downturn, but it tends to increase the unemployment level in the formal sector and bring the wages charge down. It means the poverty rate is increasing and as well as the unemployment is also increases at the same rate. Such both effects try to tend the unemployment and poverty in formal economics.
Thus recession works into two ways, directly or indirectly. Directly, in this scenario it decreases the wages of employees and it creates more jobless employees it means more number of poor in formal economy. In directly in this scenario it brings wages down those already employed in formal economy.
In other word when the economy is passing through in a recession scenario the GDP rate will be high. The goods, service and product demand would be low. When demand of the product would be low the consumer expenditure also will be low. When demand will be low the production will be low. It means less production less no employment required. It means a gap between supply and demand processes. Due this global recession all companies are very worried about the future thought out the world. They think they are also concerned whether they will be able to recruit and keep the best people to run their business.
Unemployment rate is the per cent of civilian labour work force activity looking for work but unable to find a job. The unemployment consist of three types of people first who are fit for the job but are not getting a job,
References: 1. Journal on World Economic Situation and Prospects 2008,UN dept of public information,09 Jan 2008. 2. http://freedomfromhunger.org/landing/endhunger.php?orgin=gppoverty 3. http://www.nytimes.com/2008/08/24/business/24global.html?scp=4&sq=unemplymentinglobalscenarioin2008&st=cse 4. http://www.ilo.org/global/lang--en/index.htm 5. UN news centre article on 25 January 2007 http://www.un.org/news/