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1. UNEMPLOYMENT

2. UNEMPLOYMENT
Define as a situation in the economy where there
are people between the age of 16-65 who are
not working but are actively seeking jobs
Unemployment
rate (%) = Number unemployed
labour force X100

3. • Labour force - total population between age
of 16-65 who are not in institution who are
either employed or unemployment but seeking
works.
• Full employment - economy where all available
are employment to product goods and services.

4. • Types of unemployment
1. Cyclical unemployment
- caused by insufficient aggregate expenditures.
The level of aggregate spending determines
the level of national output, which determines
employment level.
- The economy and business activities slow down
where some firms may close down or retrench
worker to cut cost.

5. 2. Seasonal Unemployment
- involves workers who have jobs for at least a
part of the year but find themselves
unemployed at other times because of seasonal
factors.
- these kinds of jobs need to have skills in other
fields so that they may continue to work during
these seasons.

6. 3. Frictional Unemployment
- caused by workers voluntarily changing jobs
and by temporary layoffs. This may even
happen at full employment when people quit
jobs for better position or pay or when fresh
graduates seek employment for the first time.
- this unemployment is temporary, but for the
economy it is ongoing throughout the year.

7. 4. Structural Unemployment
- caused by changes in the structure of demand
for consumer goods.
- workers are unemployment either because
employers do not demand their skills or
because they lack sufficient skills to obtain
employment.
- it involves labor shortages in some
geographical areas and job fields and labor
surpluses in others.

8. THE EFFECT OF UNEMPLOYMENT
1. For Individuals : Financial & Emotional
2. For Economy: Low Production, Low Income,
Slow Growth and High Poverty

9. MEASURES TO REDUCE UNEMPLOYMENT
A. MONETARY POLICIES
B. FISCAL POLICIES
C. DIRECT CONTROL POLICY

10. THANK YOU
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