40 unemployment Unemployment rates 4 1 China If

��浩 40 unemployment

Unemployment rates 4. 1% China

If the GDP declines, this indicates falling output.

Living Incomes Employment opportunities

Continual change from peaks to troughs is called the business cycle. Cyclical unemployment(2000 -2003 and 2006 -2009)

Cyclical unemployment(周期性失业) �Arise because of the demand in aggregate production is not enough. �Is a short-term unemployment. �Occurs in the years when there is an economic trough(经济的)低谷. 李彩云 24

Economic recession demand production employee

in country A, cyclical unemployment has occurred between 2000 -2003 and 2006 -2009.

�The level of unemployment measures how efficiency the factors of production are being used. �If unemployment is high，this not only means that fewer workers are being employed , but also that factories may be closing down or machinery and equipment not being fully used. 毕倩 09

How to calculate unemployment ？ To measure unemployment levels the number of unemployed is divided by the total labor force. Example： A labor force of 100 million has 2 million unemployed. Percentage Unemployed = 2, 000/100, 000*100%=2%

Types of Unemployment： （摩擦性失业）--- changes in jobs；few days/weeks；not great concern Structural（结构性失业）---change in demand；new technology Cyclical（周期性失业）---due to recession ； change in aggregate demand（总需求） Hard Core（核心失业）---physical disability； over the age of 50；criminal；no ability Seasonal---No work at certain times of the year Frictional

�Hidden（隐藏性失业）---women at home； small villages；zero productivity �Under time Employment（就业不足） ---part-

Frictional Unemployment 摩擦性失业 When people change jobs they are frictionally unemployed. Frictional unemployment is common and does not caus e any great concern. 齐宇25

A construction worker in a city, having completed his work on a building sit e, may take a few days or weeks to find a new job. The student who has just left school or gra duated from universi ty may not start wor k for a few days or w eeks. Frictional unemployment means that it takes time for workers to search for jobs that are best suit their tastes and skills.

Structural Unemployment 结构性失业 Changes in consumer tastes, resulting from the increasing number of available products, will lead to changes in demand. A shift of the demand curve will create structural unemployment in some industries. The demand for gears rather than bicycles with no gears has invo lved the bicycle industry in re-structuring to meet changing tastes.

More important, the introduction of new technology may mean that some workers do not have the necessary skills and qualifications needed for the new job. For example, the introduction of computers and containers has led to a dramatic decline of the number of wharf labore rs who previously loaded cargoes by hand.

solution Some industries have introduced retraining courses to promote greater efficiency and to avoid the problems arising from Structu ral unemployment. Another solution is to move workers to other areas where there skills are needed. However, this reallocati on of human labor can cause difficult family problems.

Cyclical Unemployment 周期性失业 When there is a downturn in the economy, there is less aggregate demand, and serious unemployment problems will arise. Perhaps the most serious unemployment problems arise from changes in methods of production.

In China, computers are slowly replacing manual workin g methods. Those who have studied English, accountanc y, economics and computing find little trouble in obtaini ng satisfying work. All ages and all times have been challenged by technologic al revolutions and the resulting fears arising from Structur al and cyclical unemployment. But, when the gap between i nexperience and experience is narrowed, these fears disapp ear.

李想 04 The following effects of unemployment are recognized: 1. Economic As aggregate demand falls and unemployment rates rise, those who have work ill tend to save more. These increased savings have an effect on investment opportunities. Businesses, uncertain of the future, unwilling or unable to borrow to finance new machinery and equipment. Consequently, productivity may decrease even further. Government revenue is affected as company sales and income(for those who earn over 2, 000 yuan a month) is not as great as before. Government spending on collective goods and services such as schools, hospitals and roads, may be reduced.

� 2. Social �The immediate effect on a family is to lower standards of living. As the family struggles to make ends meet, family tensions and quarrels may make the situation ev en worse. The individual who loses his/her job loses status and m ay feel inferior to friends, relations and neighbors. The longer the person is unem ployed the more difficult it is to get work. Perhaps the person will lose all hope and does not even bother to look for work but accept his/her fate.

� 3. General Producers, in recessions, have little incentive to raise productivity because consum ers have lower levels of demand. This situation can be helped through a government budge t defict. The government can encourage spending by lowe r bank interest rates and by encouraging exports. Without an increase in government spending there is no i ncentive for producers to raise their output. Unlessproduc ers are confident of selling their goods, opportunities for employment increase will not improve.

李续红 Post-reading 21

1. Business cycle means the path of an economy over time that shows fluctuations in aggregate economic indicators T 2. Unemployment rate is the ratio of the number of unemployed divided by the total labor force. T 3. The student who has graduated from university may not start work for a few days or weeks, this kind of unemployment belongs to cyclical unemployment. F frictional unemployment

4. Generally speaking, frictional unemployment results from the changes in demand or the introduction of new technology. F job changes 5. Facing the unemployment, government usually reduces tax rates or increasing expenditures to stimulate the economy. T

How many types of unemployment?

Frictional unemployment Structural unemployment Cyclical unemployment Hard core unemployment Seasonal unemployment Hidden unemployment Under employment

What are the effects of unemployment?

1. Economy Productivity may decrease even further. Government revenue is affected as company sales and income is not as great as before. 2. Society Lower living standard Individual lose confidence 3. Generality Producers have little incentive to raise productivity because consumers have lower levels of demand.

In recent years, it is reported that China has experienced an alarming increase in unemployment rate, especially the employment problem of graduates. 霍彩香 05

Demand>Supply

We are under different pressures from life.

Why ?