Macroeconomics in unemployment Research Paper Example | Topics and Well Written Essays - 1000 words

Macroeconomics in unemployment - Research Paper Example This paper is the best example of the thorough examination of such important macroeconomic factor as unemployment. People are considered to be unemployed when they are not actively doing productive work Unemployment rates are volatile and the other macroeconomic indicators play significant roles. Unemployment is a macroeconomic factor that is highly determined by other macroeconomic factors and its effects are widely felt across an economy. Several types of unemployment exist but four are majorly explored. The first one is seasonal unemployment that occurs due to differing needs of the hiring industries. Firms will hire employees during peak seasons when more production is required and retrench some of their employees during low seasons. The second type of unemployment is frictional employment and arises due to shifting of jobs by workers. It is also referred to as search unemployment because it normally takes time for an individual to secure a job after quitting one or after finishing their studies. Structural unemployment is another type and is caused by changes in technology and the structure of the economy. The fourth unemployment type is referred to as cyclical unemployment and results from changes in business environments It is important for an economy to maintain low rates of unemployment. The most important reason for this is economic consequences of unemployment such as the measure of the lost goods and services that the unemployed population could be contributing to the economy had they been employed. The scope of unemployment identifies wide initiatives such as governments’ monetary and fiscal policies to influence economic activities and other macroeconomic indicators towards sustainable employments rates. ... Low interest rates encourage borrowings for investments and private use. This further increases consumption and facilitates investment as firms are encouraged explore investment opportunities. This â€Å"redirect output towards its full –employment potential† (Stoup, Sobel, & Macpherson, 2009, p. 227). High interest rates from factors such as inflation or increased demand for financial services make investment expensive. The overall impact of the increased interest rates is therefore a contracted economy with lost employment opportunities towards higher unemployment rates (Stoup, Sobel, & Macpherson, 2009). There also exists a significant association between unemployment and an economy’s gross domestic product. The gross domestic product refers to the measure of all goods and services produced by an economy within a period, normally a year. Changes in the GDP will therefore reflect conditions of the labour market because the labour force generates realized produc tions. A fall in gross domestic product indicates a rise in the rate of unemployment, whether real or virtual. This occurs because if businesses resort to producing fewer goods and services, then some of the workers lose their jobs hence rise in unemployment. An increase in gross domestic product however associated with increased activity levels that further indicate lower unemployment rates (Mankiw, 2012). Unemployment also relates to consumer price index, a measure of the change in price of goods and services that are bought by individual consumers. The index also keeps track of changes in the cost of living. Low unemployment rates increase average economic potentials and this changes the consumer price

Strikes and Employment Relations Essay Example | Topics and Well Written Essays - 2250 words

Strikes and Employment Relations - Essay Example Changes in the definition and description of workforce conflicts across various time periods will provide an exhaustive understanding of whether the conflict can be considered as an influential feature of contemporary employment relations or not. Strikes can be described as the temporary disruption of work by certain groups of workers or employees. The objective behind strikes is expressing grievance or enforcing particular demand. Strikes can be temporary and in severe cases may lead to permanent closure of the factory or manufacturing site. In general, strikes have always been hampering for the company as it involves loss of time, money and productivity. However, strikes have been used as an influential method by worker unions to put their demands in front of the management. Strikes are conducted with specific and calculative purposes. As a result of its high influence and potential harm, they are often considered as a biggest manifestation of the industrial conflict. Nonetheless, looking at the present decline in the number of strikes, it cannot be concluded that strikes are the only source of conflict between employees or workers and management. Yet, it cannot be concluded that strikes have lost their importance or are sh rinking. From a worldwide perspective, it is clear that strikes are still a major source of communication and interaction in many parts of the globe. The interconnectivity between employment relations and human resource management can be understood by associating them with different managerial ideologies. For instance, unitarist ideology is dominated by autocratic and authoritarian style, where managerial control over decision making in disciplined and under strict control. In another form, unitarism can also be considered as a more paternalist management approach.