Question

Unemployment rate in Saudi Arabia in 2018 Published by H. Plecher, Oct 23, 2019 In 2018, Saudi Arabia's estimated unemployment rate amounted to approximately 5.92 percent. This increase is up .03 percent from the year before. The unemployment rate is defined as the percentage of unemployed workers in the total labor force. Where are people employed? Saudi Arabia's population is around 33 million inhabitants, and of the employed workforce, most have jobs in the oil and gas industry. This is to be expected, as the economy is based on the production and trade of oil, and as such the oil sector has a value of about 1.1 trillion Saudi riyals. Facing challenges Saudi Arabia has several economic challenges to face, including the environmentally disastrous impact of its oil and natural gas production; state-funded company Saudi Aramco is listed at the top polluter worldwide. Socially, Saudi Arabia has had a tumultuous past in terms of women's rights, where women only gained the right to drive in 2018 thanks to a series of reforms and compose just 18 percent of the labor force.

Question Explain with relevant data sources from the above information If a decrease in the unemployment rate isn't necessarily a sign of an improving.

Answer 1

A country's economic performance is measured using three key indicators, one of which is the unemployment rate.

A decrease in the unemployment rate is not necessarily a sign of an improving economy.When people stop looking for jobs and drop out of the labor force as discouraged workers, the unemployment rate will decrease even though the true employment situation hasn't gotten any better.Unemployment has multiple causes including cyclical changes in the market,technology and laws, and information gaps between potential employees and employers.Unemployment is the result of a recession whereby as economic growth slows, companies generate less revenue and layy off workers to cut costs.