UWC in Mostar Academic year 2007 / 2008 ECONOMICS Standard Level – Second Year Azra Bajramović

MACROECONOMICS Unemployment Losing job, according to one study, is one of the most stresfull things in life (just after death of spouse and going to prison).

MACROECONOMICS Unemployment  Employees - those who do any kind of payed job but also those who have a job but are absent temporarily due to illness, maternity leave etc.  Unemployed - not working but actively seeking job  Out of working force - those who do not look for job or to ill to work

MACROECONOMICS Unemployment International Labour Organization (ILO) definitions: Employees: people who regard themselves as paid employees. P eople with two or more jobs are counted only once. Self-employed: people who regard themselves as self-employed, t hat is, who in their main employment work on their own account, whether or not they have employees. In employment: employees, self-employed and participants in government training schemes and people doing unpaid family work. Unemployed: those who are without a job, are available to start work in the next two weeks, who want a job and have been seeking a job in the last four weeks or are waiting to start a job already obtained. Labour Force also defined as economically active: those in e mployment plus ILO unemployed. Economically inactive: people who are neither in employment o r unemployment. This includes those looking after a home or retired or p ermanently unable to work.

MACROECONOMICS Unemployment The unemployment rate is defined as:

MACROECONOMICS Unemployment Economic costs of unemployment there is a loss of production as a result of the unemployment: we can never retrieve that production There is the lost tax revenue which governments could have earned both in terms of direct taxes on income as well as indirect taxes on the increased expenditures coming from spending out of income rather than out of benefits. workers who find work will lose their benefits and will have to pay t ax on the employment income. They will choose to remain outside the employed section of the labour force Costs of unemployment Social costs of unemployment Having a significant section of the population unemployed leads to g reater income inequality The alienation and frustration that set in with unemployment weakens social cohesion and can lead to greater crime and social unrest.

MACROECONOMICS Unemployment IF WE TALK ABOUT UNEMPLOYMENT FROM SOCIOLOGICAL POINT OF VIEW  Are there, in your opinion, problems with e mployment of certain groups in society or everyone g ets the same chance?  Can you think of some examples of discrimination w hen it comes to employment.  What are some of the factors of discrimination at labour market?

MACROECONOMICS Unemployment QUESTIONS FOR STUDENTS TO RESEARCH: (for each country assigned) unemployment rates differences in unemployment rates in different groups in society causes of unemployment; consequences of unemployment in the s ociety what policies in the country are used to fight t he unemployment.

MACROECONOMICS Unemployment HOW TO DO A RESEARCH In your research you should focus on statistics of unemployment articles about specific features of countries’ l abor markets different studies of unemployment In order to get this information you should visit web pages of national statistics agencies, European statistics agency different NGO’s, government web pages etc.