Question

Why is unemployment the most meaningful concept you learned in Economy 2013? 150-200 words.

Answer 1

Unemployment has always been the most important economic factor that decides if an economy is experiencing growth or, it's in recessionary state. If unemployment rate is too high, it means the economy's real GDP is below it's potential level and people have become poorer. According to okun's law an one percentage increase in unemployment rate causes a 2? decrease in GDP. In economy 2013, unemployment rate among young people was usually high. According to the labor bureau, unemployment rate among men was 4? in 2012-13, but increased to 4.3? and among women it increased by almost 1? from 2012-13 to 2013-14. This caused a disrupted social structure and especially in young generation this can be seen by a greater extent. In 2008-2013, US and UK economy faced great recession which declined their economic growth. The high unemployment rate causes a risk of lost generation, which is unacceptable both morally and economically. It disrupts the social structure we live in . Thus unemployment has always been the most meaningful concept.