The reason of the essay is to show some theories of unemployment. It is mainly going to be about measuring unemployment in the UK.
Unemployment is a powerful statistic that shapes government policy and personal decisions. The government keeps a close eye on the unemployment rate. Not only does unemployment indicate that the economy isn’t operating at peak efficiency, but politicians have noticed that high unemployment correlates with losing elections. It is a major factor in determining how healthy an economy is. This is why in every country government tries to control unemployment. Government measures unemployment each month or three months. Measuring unemployment is important for the government , it shows how high or low is unemployment, and according to those statistics economics might predict the future rate of unemployment or what should be done to not have unemployment rise. Of course not always this predictions are right.
There are a lot of economic models according to which unemployment can rise and fall , but the essay is about the methods of measuring unemployment, how minimum wage can effect unemployment and what happens with unemployment when there is economic grow.
Measuring Unemployment in UK
The concept of unemployment has changed considerably over time.
Unemployment is a social scourge. It is wasteful and impoverishing and generates discontent, frustration and resentment. Ultimately, if not checked and reversed , it can lead to the disintegration or destruction of society it self.
Unemployment measures unproductive resources in an economy and also
measures the relative distribution of economic well-being in an economy. When unemployment is low, many people who want to work have jobs and are earning wages, thus enabling them to consume goods and services. In contrast, if unemployment is high, fewer people are earning wages, and are not consuming the desired level of goods and services.
There are several ways to measure...