Caribbean Studies

CARIBBEAN STUDIES
INTERNAL ASSESMENT

An investigation into the types of unemployment faced by persons living in Bounty Hall between the ages of 18-45

Acknowledgement

This project could not be successfully completed without the guidance and protection given by the Almighty God. The permission and cooperation of the residents of the community of Bounty Hall was of utmost importance to the completion of this project. Gratitude is also extended to my parents, friend and well-wishers for their ubiquitous motivational, financial and moral support given that enabled the completion of this project. Last, but certainly not least, I would like to thank my teacher for his guidance and instruction that enabled me to ably complete this project. Thank you all.

Table of Contents

Introduction……………………………………..1-2

Literature Review……………………………..3-5

Data Collection Sources…………………….6-7

Presentation of Findings…………………..8-13

Interpretation of Findings………………..14

Discussion………………………………………..15-16

Conclusion………………………………………..17-18

Bibliography……………………………………..19

Appendices………………………………………20-21

Introduction

Topic: The Workplace
Problem Statement
- Patterns of unemployment; causes and effects of unemployment in the community of Bounty Hall, Trelawny, Jamaica.

Research Questions 1. What are the types of unemployment faced by persons living in the area. 2. What factors cause persons to be unemployed? 3. What can be done to lessen unemployment and the effects it has on individuals and their families?

Purpose of Study
This research is being conducted in order for the researcher to:
◦ develop a better understanding of the problem being investigated.
◦ develop the research and analytical skills already possessed.
◦ facilitate a more interactive learning and investigation of the topic. The researcher will be able to participate in the learning of this topic
◦ reach informed conclusions on the topic and make logical recommendations as to how the problem can be effectively dealt with.

Statement of Problem This seeks to find out the impacts that unemployment has on the community. This small, rural community has a substantial amount of unemployed persons. The thorough research of this problem will better able the researcher to understand the real causes and effects of unemployment. The information gained will equip the researcher with a better interpretation of this problem and also assist in his overall educational development. This will also prove whether or not the theoretical causes and effects of unemployment are those experienced by everyday unemployed persons.

DEFINITION OF KEY TERMS Frictional unemployment is unemployment which arises when workers are between jobs.
Imperfect information - an unemployed person cannot know the location and status of all vacancies in their area.

Literature Review
Unemployment is a worldwide phenomenon being experienced by both developed and developing countries alike. However, each country varies in rate due to the factors, economically and socially. The unemployment rate of a country or area may also be linked to disturbances in its social spectrum. The importance of understanding unemployment at a community level has been discussed in a number of spheres therefore, there is increasing availability of literature on the topic.
The Jamaica Observer (2010), placed the Don Anderson Poll under the microscope. According to Anderson, when his field team asked persons what worried them the most about Jamaica today, 27 %cited unemployment, lack of job opportunities or joblessness as the principal issues. Unemployment is an economic condition marked by the fact that individuals actively seeking jobs but remain out of one. The level of unemployment varies with economic conditions and other circumstances.
“People will always be unemployed. These are the people who are not able or willing to work at the current wage rate.” “Frictional unemployment is unemployment which arises when workers are between jobs. One form of frictional unemployment is search unemployment. This occurs when workers do not accept the first job or jobs on offer but spend time looking for better-paid jobs” (Milton Friedman). “Frictional unemployment is caused by:
Imperfect information - an unemployed person cannot know the location and status of all vacancies in their area. This can be reduced through 'job centers' or similar state-funded operations aimed at increasing information available to jobseekers
Disincentives - there may be government disincentives to seek work, as an apparently well-paid job will appear less attractive due to taxation and/or removal of benefits” (en.wikibooks.org/). “Classical or real-wage unemployment occurs when real wages for a job are set above the market-clearing level. This is often ascribed to government intervention, as with the minimum wage, or labour unions” (Murray Rothbard). “Structural unemployment is caused by a mismatch between jobs offered by employers and potential workers. This may pertain to geographical location, skills, and many other factors. If such a mismatch exists, frictional unemployment is likely to be more significant as well. The causes of such structural unemployment include:
Economic Change - that is, simply the changes an economy goes through as a result in the standard of living, technological change, and the associated economic growth.
Capital replacement - is the replacement of labour by capital, as a result of improvements in economies, leading potentially to unemployment. For example, in the late 1990s there was a tech bubble, creating demand for computer specialists. In 2000-2001 this bubble collapsed, creating unemployment for many computer workers. A housing bubble soon formed, creating demand for real estate workers, and many computer workers had to retrain to find employment” (Wikipedia.org). “Seasonal unemployment occurs when an occupation is not in demand at certain seasons” (Wikipedia.org). “Cyclical or Keynesian unemployment, also known as demand deficient unemployment, occurs when there is not enough aggregate demand in the economy. This is caused by a business cycle recession, and wages not falling to meet the equilibrium rate” (John Keynes). “The effects of unemployment can be quite adverse. These include:
Loss of personal income - Those not working will encounter a fall in their living standards, as their income falls. The unemployed will have less purchasing power, and less disposable income. Society - Inequalities in wealth and income, and high unemployment have been shown to be linked to negative social effects, such as high crime rates in these areas. The lack of money to spend on private healthcare, healthy goods and living, means that those who are unemployed often lead less healthy lifestyles and have less backup when things go wrong. Also, children from unemployed households often have had poorer education and hold fewer skills than average, upon entering work, meaning that high unemployment levels can be self-perpetuating through time” (en.wikibooks.org). “Unemployment represents a private cost to those directly affected by it; a loss of income, and if unemployment is long term, a potential loss of skills as well. Unemployment is also a social cost to our community. Unemployment is associated with higher levels of family breakdowns, alcohol and drug abuse, and suicide” (John Keynes). “Governments are always trying to reduce the level of unemployment.” (en.wikibooks.org).

Data Collection

The questionnaire was the instrument chosen for use in the collection of primary data. This instrument was chosen for use due its flexibility and the extent to which it was easily distributable among the sample and also fairly easily collected subsequent to its completion. The researcher estimated that there were approximately sixty (60) houses located in the small community. The researcher chose to randomly distribute questionnaires to every other house (thirty houses in total). Therefore, the researcher prepared thirty (30) questionnaires which were then distributed by house-to-house visits. The sample was given a two-week time-period within which to complete the questionnaire. In the instance that a resident was absent, the questionnaire with the relevant instructions was left under their doors or in their mailbox. Subsequent to the expiration of the time-period given, the researcher was only able obtain the responses of twenty-five (25) of the residents to whom questionnaires were issued. The researcher also used library & internet researches (secondary data) to garner additional information about the topic being studied. These sources were used to acquire literature put together by previous researchers of the problem being studied. The data was used to outline some of the possible results that the researcher could receive from the sample and also to have a more in-depth knowledge of the problem at hand. These sources of information (primary & secondary) were quite instrumental in enabling the researcher to better understand the problem being researched. The secondary data sources provided information based mainly on what theorists and previous researchers of the problem concluded were the causes and effects of the problem in question. The information concisely explained what the problem was and eradicated all possible misunderstandings of the topic. The relevant causes and effects of the problem were clearly outlined and the researcher was provided with some of the responses that should be given in closed-ended questions. The primary source of information gave an insight into what people face in the “real world”. This information enabled the researcher to have a greater understanding of what causes the problem on a local basis and the effects it has on residents. This provided a firm ground for adequate comparison of theorists’ explanation and the “real” explanation.

Presentation of Findings

Table 1 showing: The composition of the respondents

|Gender |Males |Females | | |Total |
| |18 |7 | | |25 |
| | | | | | |
|Age range |18-25 |26-32 |33-45 |46+ | |
| |11 |7 |3 |4 |25 |

This is a table showing the composition of the respondents (gender and age range). Eighteen (18) of the twenty-five (25) respondents were males while the remaining seven (7) were females. Eleven (11) of the respondents were from the age range 18-25 years, seven (7) were from the age range 26-32 years, three (3) from the age range 33-45 years and the remaining four (4) from the 46+ age range. This shows that most of the respondents were males and were of the 18-25 years age range.

Figure 2 showing: The number of respondents currently employed

This is a bar graph showing the number of respondents that are presently employed. Nineteen (19) of the Twenty-five respondents are currently employed while the remaining six (6) are not working.
Figure 4 showing: Respondents currently seeking jobs

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The above pie chart shows the number of unemployed respondents who are currently in search of jobs. Seventy-nine percent (79%) of the unemployed respondents are currently seeking jobs while the remaining twenty-one percent (21%) indicated that they were not currently in search of a job. Sixteen (16) of the respondents; when asked if they have ever been employed before, indicated that they have had a job previously. The remaining six (6) respondents indicated that they have never been employed before.
Figure 5 showing: The different types of workers that compose the sample

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This is a doughnut showing the different types of workers that compose the sample. Thirty-six percent (36%) of the respondents indicated that they were skilled workers, thirty-two percent (32%) were semi-skilled, twenty percent (20%) percent were professionals and the remaining twelve percent (12%) indicated that they were unskilled labourers.

Fig. 8 showing: The Length of Unemployment of Respondents

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The above doughnut displays the length of time that the respondents have experienced unemployment for. Sixty percent (60%) of the respondents outlined that they experienced unemployment for a period of less than one year. Twenty-four percent (24%) indicated that they have experienced unemployment for a period of 1-2 years. Twelve percent (12%) indicated that they have been unemployed for 3-5 years and the remaining four percent (4%) for more than five (5) years.

Fig. 9 showing: The Causes of Unemployment among the Respondents

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The pie chart above shows the different reasons that were given for the unemployment of residents. Forty percent (40%) of the respondents indicated that they were in search of new jobs and hence were unemployed. Thirty-two percent (32%) indicated that the closure of the business organization that employed them resulted in their unemployment. Sixteen percent (16%) of the respondents indicated that the shortage of jobs requiring their possessed skills caused them to be unemployed. Twelve percent (12%) indicated that wage rates were too low and this caused them not to be employed. None (0%) of the respondents indicated that their occupation was no longer in demand and therefore this did not lead to their unemployment

Interpretation of Findings The majority of the respondents are males mainly of the age group 18-25 years old. All the respondents have been employed previously and a huge proportion of them are currently unemployed. Of the majority of residents unemployed, only a small percentage isn’t currently seeking some form of employment. Those persons not seeking jobs are not considered to be unemployed due to the fact that they don’t fulfill the criteria to be considered unemployed. They must be in search of a job to be considered unemployed. The majority of the sample is composed of skilled and semi-skilled personnel. Most of these workers are masons, construction site workers or business personnel. The largest proportion of the sample is mostly unemployed during the quarter, April- June each year. This means many of the residents suffer from seasonal unemployment due to the nature of their jobs, most being employed by the hotels. Residents also suffer from frictional unemployment. The majority of residents have been unemployed for a period of less than a year. This means they have not been unemployed for lengthy periods due to the fact that their jobs are seasonal. The major cause of unemployment among the respondents is that they are currently in search of new jobs and their business organization has closed down. This is justifiable due to the fact that the nature of their jobs require that they seek new employment at completion.

Discussion of Findings The findings of this research were not entirely in agreement with those of previous investigators of the problem at hand. It was unearthed that residents suffered from several different types of unemployment. The major types of unemployment affecting residents are frictional and seasonal unemployment. Due to the nature of these types of unemployment, it can be assume that unemployment will nearly always exist within this community due to the occupation of the residents. The major occupations prevalent among the sample lend themselves, especially, to frictional unemployment. Masons, carpenters and construction workers will be unemployed between jobs and so the situation will nearly always prevail within the community. The causes of unemployment in the current and previous cases differed somewhat due to the type of workers living in the different areas. In the current situation, workers are mainly unemployed frictionally (between jobs) and to a lesser extent, due to the fact that their company closed down. This implies that workers are employed at different times when a job is available. This means they still have sources of employment that require their skill periodically. The previous sample that consisted only of miners, however, was mostly unemployed structurally due to the fact that their only source of employment, the mines, were closed down and so their skills mismatched those required in the area. This means that unemployment in the current sample is more avoidable than it was in the previous sample. This is due to the fact that the former sample loss their only source of employment, the only job they were trained for, while the latter sample still possesses a ‘way out’.

In the case of the latter sample, the implications are that certain measures could be used to prevent unemployment in particular instances. The respondents indicated that more experience in their field and better work attitudes could have been used to prevent their unemployment. This means, unemployment in this case was not inevitable and so the responsibility was that of the respondents to make the necessary adjustments to satisfy the requirements of their employers. However, in the former case the unemployment of the sample was inevitable. The closure of their only source of employment meant that their personal attitudes did not impact on their unemployment. This means the latter sample can make adjustment to alleviate their situation, an opportunity that was not granted to the previous sample. The effects of unemployment on the current sample and on the previous sample differed slightly. This is due to the fact that the previous sample suffered from much more of a long-term unemployment while the unemployment of the current sample is more of a short-term one (less than a year). The high levels of stress, poverty and crime faced by the previous samples were less prevalent among the current sample. This may be due to the fact that the current sample is mostly unemployed between jobs due to the type of jobs they undertake. The major challenges faced by the present sample are those of financial constraints, lower standard of living and stress to a lesser extent. This implies that the current residents should be more capable of coping with these effects as proper income management should be able to alleviate the situation being faced. Previous samples, however, were almost permanently unemployed and had to deal with situations of abject poverty. The effects on previous samples are greater due to the longevity of their unemployment situation.
Conclusions
In the final analysis, it can be concluded that unemployment is an escalating problem in the community of Bounty Hall, Trelawny. This situation is mainly faced by males, aged 18-25 years old who have been living in the community for up to five (5) years. These individuals are mostly unemployed frictionally, during seasons or while they are in search of jobs and are most frequently out of jobs for less than a year. The larger portion of the sample implied in their responses that certain measures could have been put in place to prevent their unemployment, and hence they are not unemployed due to a scarcity of jobs but due to incompetence. Residents suffer severely during periods of unemployment due to the fact that that they are financially incapable of supporting their ‘usual’ lifestyles. Residents, in an effort to mitigate the effects of their unemployment, undertake substantial savings and conservation during periods of their employment.

Limitations of Research
The major limitation to this study was the inability of the researcher to garner information from a more substantial amount of residents due to time and financial constraints. A very effective research necessitates the coverage of a large a portion of the sample as possible to increase the reliability of the findings and to give a clearer picture of the prevailing situation within the community. However, the shortage of time and a lack of adequate financial resources quelled the researcher’s effort to conduct a large-scale research. Some crucial information possessed by persons external to the sample may have been omitted from these results. Recommendations
Although time and financial constraints were the main limitations to this research, other improvements could have been made if these factors ceased to exist. Citizens should be encouraged to generate a more timely response to the questionnaires they were presented with. This could enable the researcher to accomplish a more comprehensive analysis of the data garnered from the respondents.
The implementation of workshops aimed at changing young person’s mindsets would be a great starting point. The workshops would be held every two Saturdays at the community centre. The workshops could take into account a whole array of programs, stemming from monthly seminars and job fairs. These would allow persons to get knowledge of the various jobs available, while learning to keep those said jobs.
Bibliography

→ Investor Words @
(www.investorwords.com/5838/unemployment.html)

→ Wikipedia @ http://en.wikibooks.org/wiki/Macroeconomics/Employment_and_Unemployment → AS Level and A Level Economics
By Gordon Cain,Colin Bamford, et. Al.

→ Economics Explained
By Milton Friedman

→ Wikipedia @ en.wikibooks.org/ Appendices

The Instrument
This research is being conducted in partial fulfillment of the requirements outlined by the Caribbean Examination Council’s (C.X.C.’s), Caribbean Studies Syllabus. The information collected will be held in confidence and will not be used for any other purpose. Please answer the following questions as accurately as possible:
NB. Tick (√) boxes where applicable or write responses in the spaces provided.
Questionnaire
Gender Male  Female 
Age 18-25  26-32  33-45   1. How long have you been living in the community? Less than a year  1-5 years  6-8 years  more than 9 years  2. Are you employed presently? Yes  No  3. Have you been unemployed before? Yes  No  4. If ‘No’ is the response to (2) above, Are you currently seeking a job? Yes No 5. Have you ever been employed before? Yes  No 6. What type of worker are you? Skilled  Professional  Semi-skilled  Unskilled  7. What kinds of job/work are you trained to do? Mason  Carpenter  Doctor  Business person  Construction worker  Hairdresser  Other ___________________ 8. At what time of the year are you mostly unemployed? Jan.-Mar  Apr.-June  July-Sept.  Oct.-Dec.  None  9. How long have you been unemployed? Less than a year  1-2 years  3-5 years  More than 5 years  10. What has caused you to be unemployed? Business closed down  Searching for a new job  No job requiring your skill is available  Wage rates are too low  Occupation is no longer in demand  Other ____________ 11. If ‘Yes’ is the answer to (5) above, what do you think could have be done to prevent you from being unemployed? Better work attitude  Higher education  More experience  Other ___________________________________________ 12. How does your unemployment affect you and your family? Financial constraints  Stress  Lower standard of living  One has to participate in illegal acts  Other_______________ 13. How severely would you say unemployment affects you? Not severely  Fairly severely  Very severely  14. Do you put measure in place to help you and your family members cope with your unemployment? Yes  No  Sometimes  Not really  15. What are some of the measures, if any, that you put in place to help you and your family members cope with your unemployment? Substantial savings  Conservation  Side-jobs  Others ________________________________ 16. Do you think these measures are adequate to deal with the situation effectively? Yes  No  Not really  Not sure  17. What do you think can be done to stop the rise of unemployment in your community? More jobs  Training workers  Providing more information about job opportunities to workers  Better work attitudes  Other ________
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Respondents currently seeking jobs

Yes

79%

No

21%

Yes

No

Constitution of Sample

Skilled

36%

Professional

20%

Semi-skilled

32%

Unskilled

12%

Skilled

Professional

Semi-skilled

Unskilled