...26/10/2010 Employment and Unemployment A2 Economics, Autumn 2010 Measuring Unemployment • A Working Definition of Unemployment – People able, available and willing to find work and actively seeking work – but not employed • The Claimant Count Measure – The number of people claiming the Jobseekers’ Allowance – a monthly headcount of the unemployed • The Labour Force Survey – Must have actively sought work in the previous four weeks and be available to start work immediately – A large sample – but subject to sampling error – This is the government’s preferred measure – The basis for cross-country comparisons 1 26/10/2010 Unemployment in thein the UK Unemployment UK Economy Unemployed people aged 16-59 (women) / 64 (men), seasonally adjusted 13 12 11 10 9 8 7 6 5 4 3 2 1 0 90 Labour Force Survey Claimant Count 13 12 11 10 9 8 7 6 5 4 3 2 1 0 06 08 10 Source: Labour Force Statistics per cent of the labour force 92 94 96 98 00 02 04 Changes in the world of work 2 26/10/2010 Flows in the Labour Market Employed Labour force New hires Recalls R ll Job-losers Lay-offs Quits Unemployed Retiring Temporarily leaving l i Taking a job Out of the labour force Discouraged workers Re-entrants New entrants Types of Unemployment • Seasonal Unemployment – Regular seasonal changes in employment / labour demand – Unemployment data is usually given a seasonal adjustment to reflect this – Not a major concern...
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...Views on The World Financial Crisis: Will It Continue To Deepen? Introduction The Great Recession of the 21st Century (Wesel, 2010), which began in 2007, has affected the entire world economy; admittedly, some countries have been hit harder than others but few nations can really say that they have been entirely spared from the crisis. What is more, the devastating repercussions of the financial crisis can still be observed to this day, more than five years since it first began, as numerous countries around the globe are still struggling to get back on track. The road to recovery from the financial crisis has been more difficult than initially anticipated and, with the dawn of a new year, it is still hard to say whether things will start looking better for the world economy or not. The question on everybody’s mind is whether the world financial crisis will continue to deepen or not. Background Though still a somewhat a highly debated matter, the onset of the world financial crisis can be pinpointed to 7 August 2007, when BNP Paribas terminated withdrawals from three hedge funds, on grounds of a complete lack of liquidity (Elliot, 2012). For the two years that followed this incident, the world economy was on a continuous downward spiral. Economies around the globe started to slow down, some faster than others, stock markets began to drop, international trade declined, and credit tightened. In the United Kingdom for example, the catalyst for the economic crisis that engulfed...
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...The European Economic Crisis A Paper Submitted to Webber International University In partial fulfilment for the Bachelor of Science Degree in Finance By: James Holt Date: November 26, 2013 Course: ENG112-1 Semester: Fall 2013 Instructor: Professor Nancy Davis Word Count: 2663 The European economy is in turmoil. The credit crunch in 2008 caused chaos throughout the global and European economic systems and highlighted the negligence of not only governments but also the financial systems in place. In the highly praised publication the Economist the author G. Tett writes “The European economy is in the midst of the deepest recession since the 1930s, with real GDP projected to shrink by some 4% in 2009, the sharpest contraction in the history of the European Union. Although signs of improvement have appeared recently, recovery remains uncertain and fragile” (Tett, 2013). A publication of this magnitude publishing this shows the utter chaos in the European Economy. The economy of all countries within the Euro has been greatly affected; it has also affected the surrounding countries around the Eurozone. The stronger European economies have recovered a great deal these include...
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...National Minimum Wage be increased? "I think Britain can afford a higher minimum wage. I think we have worked hard to get to this point and we can start to enjoy the fruits of all that hard work." This was said by George Osborne the Chancellor of the Exchequer and Second Lord of the Treasury of the United Kingdom. George Osborne has signalled that he is willing to raise the national minimum wage from £6.31-an-hour to £7-an-hour, an above-inflation increase. The National Minimum Wage was set up in 1998 to protect low-paid workers; however increase in the UK National Minimum Wage will cause more harm to the economy, employment sector and even the society than the proposed good. Students will leave their primary aim of getting educated to go in search of jobs; employers will employ less number of people thereby increasing unemployment; the economy will suffer lack of growth that might get Britain into bigger debts and probably a recession. Researchers from the Respected Organisation for Economic Co-operation and Development said Britain has more teenage drop-outs than in most other countries. Almost one in five young people in the UK are not educated to A-level standard which is a shocking figure. Increasing the national minimum wage will encourage high school student to drop-out and go in search of jobs. What does the future hold for the upcoming generation? The society of today is looking to this upcoming generation to make the world...
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...concern as it accounts for a significant share of the global economy and is also India’s major trade and investment partner. Clearly, the situation in Europe needs major policy attention not just for Europe but for all major global economies, be it the emerging nations or the major developed economies. Eurozone Sovereign Debt Crisis: Background The Eurozone crisis is a term used to describe the soaring debt levels of five of the major Eurozone nations and their inability to pay off a part or whole of this debt that they have accumulated over the recent decades. These five nations including Greece, Portugal, Ireland , Italy and Spain have failed to generate enough growth for their economies to retain the bondholder’s confidence in their ability to hold the guarantee that they promised to deliver. The crisis that blew up has far reaching consequences extending beyond the national boundaries of these five nations painting a gloomy picture for all the major global economies. This sovereign debt crisis has its roots in the global crisis of 2008-09 that shook the world economy and paved the way for the debt crisis in Europe. The global economy including the Eurozone countries have experienced slow growth since the U.S. financial crisis, which then exposed the unsustainable fiscal policies of the countries in Europe. Greece was the first to feel the pinch of...
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...payment problems * Ensures stability of national monetary system * Fiscal Policy * Government changing taxes and/or government spending in effort to increase or decrease business activity * Expansionary FP leads to increased spending but downside is budget deficits * Contractionary FPleads to budget surpluses or smaller deficits * AKA Austerity (attempt to shrink growing deficits) * Monetary Policy * Central Banks changing the MS to increase or decrease the availability of credit in an effort to increase or decrease business activity * Primary tool is Open Market Operations * Buying and Selling short term securities * Dual Mandate Inflation & Unemployment * ECB does not have a dual mandate like the Fed THE EUROPEAN UNION (EU) * Explain the purpose of an “economy” from a European perspective * Equity & Leisure more important than consumption * Social goals more important than individual goals * Market for production; Government for...
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...Causes and Effects of Unemployment Unemployment or joblessness is a state of life in which a person is missing a paid employment opportunity and is actively seeking work. Nowadays hundreds of millions of people are off the pay roll, roughly corresponding to about seven percent of the world’s population, whereas these rates can be much higher in regions of Southern and Western Africa or the Middle East. Furthermore, in the era of globalization and in a time of financial market disruptions unemployment is on the rise. As joblessness is so prevalent in the world, it is not surprising that socio-economical scientists are learning more about its causes, thus trying to mitigate the social and monetary consequences. Primarily, they distinguish between involuntary and voluntary induced unemployment. The most frequent reasons for unemployment are involuntary by nature since all persons concerned got out of work due to structural or cyclical conditions of the industry. Both occur when demands in the labor market place cannot be accommodated. Structural unemployment often originates from a shift in the economy that makes it difficult for certain segments of the population to find new workplaces or to retain their jobs. Economists reveal that there is a mismatch between the jobs available and the skill levels of the unemployed. The processes of Industrialization in the second half of the 18th century or the recent Digital Revolution are only two examples for structural unemployment when...
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...country or region, but affect social/economical system of virtually every other country in the world. The contemporary economics and politics in individual countries are so densely interconnected that it is impossible to deal with local problems without taking "all the variables" into account. This is the reason why practice of social work has to be adapted to cope with new and complex social problems that are emerging as a side-effect of worldwide globalisation. There are numerous examples of global political or economic changes causing social problems that require international solutions. Probably one of the most noted is widespread exploitation of cheap workforce in developing countries by large multinational companies. Such practice causes great social injustices and is often infringing basic human rights. Also, current economic model stimulates flow of wealth from poor towards the rich and generates constantly increasing differences between the poorest and the richest. It is important to note that terms "poor" and "rich" are no longer referring to individuals, but rather to whole countries or economical systems. Great social injustices are...
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...requested the Commission to "carry out a detailed examination of those problems and to report on its conclusions in the autumn". In response to this request from the European Council, the Commission has attempted to identify the impact of intra-Community currency fluctuations on economic growth and on the internal market. It is also ready to present this report to the appropriate institutions of the Union. I. Constraints However detailed it may be, any study of this type comes up against a number of difficulties: some of the key data for the period after 1994 are not yet available; the effects of the fluctuations on investment decisions and employment are difficult to quantify; it is too early to draw definitive conclusions as to the ultimate consequences of these fluctuations, especially as relatively long periods can elapse before firms react; it has only been possible to analyze certain sectors in detail; II. Findings Despite these constraints, a number of phenomena can be identified: a deceleration of growth According to the estimates of the Commission's services - confirmed by other international institutions - the currency turmoil and the sudden changes in current or anticipated profitability stemming from it have e~1gendercd uncertainty and a wait-and-see attitude among economic agents, . leading to a slowdown in growth in 1995 of the order of 0.25 to 0.5 of a percentage point (dollar related efTccts included). Sustained...
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...This assignment´s main objective is to clarify the Great Recession, it´s causes and consequences. Then, it will be highlighted the possible relation between the actual crisis and one(s) of the “killer apps” listed by Neil Fergunson, a British Historian known by his provocative and controversial views. Many economics acknowledge the Great Recession to be the most devastating global economic crisis since the Great Depression in the 30´s. This crisis is based on some factors, worth to be emphasized, such as easy credit conditions that encouraged high risk lending and borrowing practices; international trade imbalances; the housing bubbles; the fiscal policy choices by the governments, related to their revenues and expenses or the position taken by some federal reserve banks, especially on the bailing out process of financial institutions. The first cause we can appoint it’s related to the risk or actual bankruptcy of the major financial institutions globally, starting with the collapse of the “Lehman Brothers” (September 2008), a global financial services firm. Some of these kinds of institutions highly invested in risky securities, which depreciate almost their entire value, when United States and European housing bubbles began to deflate during the 2007-2009 period. Consequently, as share and housing prices decreased, a major panic was installed on the inter-bank loan market, resulting on the failure of many others large and well established investment and commercial...
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...Migration and its impact on the labor market Case Study: Romania "Those who contemplate the beauty of the earth find reserves of strength that will endure as long as life lasts. There is symbolic as well as actual beauty in the migration of the birds...There is something infinitely healing in the repeated refrains of nature - the assurance that dawn comes after night, and spring after the winter..."(Rachel Carson) 1. General theoretical aspects of migration. Historical and social perspective Migration is defined as a "change from a social, economic, political and / or cultural environment to another, in order to develop a project and answer to any individual or group expectations." Migration phenomenon has always existed, resulted through transhumance, invasions, colonization and crusades, generally caused by the attraction of the richest regions on the poorest populations. Labor migration is the supportive factor of globalization,'' a process that allows reducing geographical constraints on social and cultural processes in which individuals are increasingly aware of this." There is currently no state or part of the world that does not import or export workforce. During the 20th Century the migration process developed significantly. In this period, Romania was predominantly a country of emigration and still is. Acording to some sources, by 1914, a large number of people decided to cross the Atlantic Ocean, most focusing on the U.S. and Canada, the rest of them going to...
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...The European Debt Crisis In 2009, Greece came forward and announced that their financial management of their economy had gone awry. Greece's revealed their budget to be 12.7 percent of gross domestic product (GDP), in addition, its debt-to-GDP ratio at 120% was twice the limit allowed in the Maastricht treaty. This triggered what is now known as the European Debt Crisis, and led to similar announcements by Portugal, Italy, Ireland, Spain and most recently Cyprus. In the next pages we will attempt to explain the events leading up to the crisis and potential next steps for the European community. On February 7th, 1992 the 13 member nations of the European Council came together to sign the Maastricht Treaty. The treaty was designed to create financial stability throughout the Euro Zone by laying out fundamental fiscal policies for each country to follow. The treaty primarily encompasses four points: 1. Inflation rates: No more than 1.5 percentage points higher than the average of the three best performing (lowest inflation) member states of the European Union (EU). 2. Government finance: Annual government deficit: The ratio of the annual government deficit to gross domestic product (GDP) must not exceed 3% at the end of the preceding fiscal year. Government debt: The ratio of gross government debt to GDP must not exceed 60% at the end of the preceding fiscal year. 3. Exchange rate: Applicant countries should have joined the exchange-rate mechanism (ERM II) under the...
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... Financial crises – definitions and origin The majority of economists and monetarists define financial crises as a manifestation form of banking crises, with an impact on financial stability and reaching the state of collapse of the financial infrastructure in the absence of central bank‟s intervention. Financial collapse which affects most of the companies generates quickly problems over the banking system as the following consequences: the panic of the clients, inability to distinguish between the efficiency and the difficulty of banks, deposit withdrawals. Jack Reed, an American politician mentions: “The financial crisis is a stark reminder that transparency and disclosure are essential in today's marketplace.” In economic literature, the problems in the banking system are the main sources of the financial crises. All the economic collapses require injections of liquidity or public financial funds, in some cases, private funds from banks and international institutions. Financial crises have usually as a consequence the unemployment because labor markets are globally rigid, the currency is in devaluation, and people usually enter into a "forced leave". Therefore, the most important crises that marked the population at an individual and global level, in a top of seven, were: the Great Depression during 1929-1939, German Hyperinflation between 1918 and 1924, the Great Recession in...
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...MARKET RESEARCH WHY HAVE WE CHOSEN THIS COMPANY? Introduction Campofrío is a Spanish company of power established in Madrid, but created in Burgos. Campofrío is the leading company processing and sale of meat products in the countries of Europe and one of the largest in the world in the sector. The company is headed by Pedro Ballvé, and currently employs more than 12,000 workers in several countries. Revenue that gets Campofrío in Spain is 40 of its total revenue. In addition to Campofrío has several factories distributed throughout the country production. The reasons for which we have chosen the company Campofrío are: * Campofrío is one of the best known companies in the market of meat products and has an excellent positioning in Spain. * Due to its good market position Campofrío carries exerting its activity for quite some time in Spain and its products are sold in almost all supermarkets so it is one of the brands preferred by consumers are familiar with this brand. * It is one of the leading companies in the food sector of meat products in Europe with subsidiaries in several European countries such as Portugal, France, Italy, Belgium, Switzerland, Germany, the Netherlands and Romania and one of the most important in the world. HOW IS THE COMPANY? Campofrío is a company of Spanish power aimed at the market of meat products being the European leader in processed meat products and one of the most important in the world. Campofrío is a company that...
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...The Warwick MBA Assignment Cover Sheet Submitted by: 1167899 Date Sent: 21st of May 2012 Module Title: Economics of the Business Environment Module Code: IB827Z Date/Year of Module: May 2012 Submission Deadline: 21st of May Word Count: 1 113 Number of Pages: 9 Question: More on the austerity debate Question 1: Use the AS/AD framework Question 2: Austerity measures and stimulus “This is to certify that the work I am submitting is my own. All external references and sources are clearly acknowledged and identified within the contents. I am aware of the University of Warwick regulation concerning plagiarism and collusion. No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been done an appropriate reduction in the mark I might otherwise have received will be made.” Economics of the Business Environment Lesson 4 assignment WBS08 1167899 21st of May 2012 IB827Z Question 1 Let’s first focus on the definition of GDP, inflation, and public sector borrowing: GDP: Gross Domestic Product, or how much final goods and services is an economy producing. Inflation: is the money devaluation. This phenomenon may be persistent and then imply a raise in prices. Public sector borrowing: money that a state and especially the government will buy for financing its activities (the ones from the public sector in this case). If we now look at the...
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