What Are Relationships Among The Economy And The Unemployment

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The Relationship between Unemployment and Economic Growth Condition
In most part of the world the economy and the unemployed are very closely interconnected. If the unemployment goes on a drastic change the economy takes the same path. With trade prevailing in bad economic days employees are laid off to save the business financial status. However, as a result of these layoffs people do not have cash to spend which will in turn cause problems to the economy. Economic increase is a on going and incorporated step of interface to increase the productivity of the national economy constantly to raise a national capital income. It’s noted that increase in employment will raise the gross product. This happened in Brazil some years ago the percentage of the unemployment reached at 13.1 percent (Aghion & Howitt 481).
Brazil noticed a terrible loop and the government decide to invest money on economy. By providing fee education to the people and lowering the tax the government was able to recover economically. Companies used the advantage of the tax cuts to keep there employees and created employment for new people. The free education provided people with chance to new experience and better chances to get employment. These process decreased the rate of unemployment rate and improved the economy of the country
With reference to Trading Economics, (2010) the table placed by the rate of unemployment in 2009 was low and in 2010 it increased. The data averaged change by 61 percent in every. In view of the Brazil’s graphs of the economy one can say the rate of unemployment relate directly with the economy. In 2009 the rate of unemployment started to improve, trade and the exports also went up. Economy growth is a vital source to reduce unemployment (Aghion & Howitt 478). Most nations that contain poor social indicators reduce the productive energy of the economy along with its capability to service its increased level of unemployment. The expansion policies contain no significant consequences to reduce unemployment. The malfunctioning of a nations labor market affects the income degree of the public together with high inequality, as well as, poverty. The decrease in output mostly affects the poor who are mostly unemployment. It is articulated that labor potential increases where the capacity of a country’s economy is not increasing with the sequence of the labor. Therefore, unemployment rises in economies that do not expand, while the low wage in the informal sector is gradually increasing. There is the requirement to speed up the economic growth to enable or uphold unemployment decrease. Continuous growth is the main requirement to decrease unemployment as portrayed by Brazil. Macroeconomic firmness, venture oriented policies, as well as, political firmness becomes the source to attain a great rate of growth. Altogether, industry policy is required to found a competitive policy. Export directed strategies are also a requirement to establish an industrial sector to the country and not other countries to be able to avail employment locally. With the help of economist and strategy professionals it is easier to come up with a suitable policy to eradicate the issue of economic growth and unemployment. The labor concentrated strategies must be implemented to decrease unemployment in a nation that has both a rural section and an urban section. This requires a lot of energy to eradicate the human capital along with establishing infrastructure for speedy expansion, as well as, reduce unemployment all through the labor concentrated strategies.

Reference
Aghion P, Howitt P. Growth and Unemployment. Review of Economic Studies. 1994. pp. 477-494