The natural rate of unemployment refers to level of unemployment existing when the economy is at full employment i.e. the labour market is at equilibrium. Stated otherwise, natural rate of employment is the level of unemployment that exist in healthy economy. At natural rate, the aggregate supply of labour is equal to the aggregate demand for labour. Every worker willing to work at the existing real wage is employed and involuntary unemployment is non-existent. Nonetheless, voluntary unemployment prevails since some workers will remain unemployed as they search for jobs offering higher wages or better working conditions. Structural unemployment is ...
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Many health proposals call for employers and the government to share responsibility for paying health care. Employers are urged to take charge in providing cover for their employees because of the advantages that come with it. If employers take this initiative they will create a level playing field in the economy by ensuring equity to all employees in all sectors. This move will go long ways in ensuring employees are satisfied with their jobs. This paper will analyze the reasons behind employers paying for their employees’ health insurance. Times are gone when it was considered a risk when an employee ...
Homelessness has been one of the main challenges of governments all over the world. Right from Asia, United Kingdom, Africa, china, and USA have varying levels of homelessness in their countries. The cause of homelessness may vary from one region to another. The same applies to the solutions. This paper articulates some of the pertinent issues surrounding homelessness in general with a critical focus in the United States of America. I tend to belief that the problem of homeless is caused by some aspects inherent in the current USA economic systems. According to Robert G. Valletta, (May 2005) the ...
Full employment implies the level of employment in which there is absence of cyclical or demand-deficient unemployment. Furthermore, full employment is defined as the adequate level of unemployment above zero rate of unemployment; the deviation from zero rate of unemployment is explained by the existence of non-cyclical types of unemployment. Indeed, presently full employment is defined as the Non-Accelerating Inflation Rate of Unemployment arising from economists’ argument that an unemployment rate of above 0% is critical to control the rate of inflation. Zero rate of unemployment is considered detrimental because workers would demand pay rise fuelling inflation. Since 1949 ...
Essay
Question 1 Many factors influence the economic growth in the developing countries. These factors include internal government policies, political stability, domestic capital formation, investment, export policy and foreign aid among others. Collectively, these factors provide the most significant platform for economies in developing countries. The major problem in developing countries is that they lack proper policy to implement these factors to promote economic growth. This has led to high rates of unemployment, income inequality, inflation and poor economic growth among others. Thus, the paper will evaluate various factors that constitute economic in developing countries. Globalization and income ...