Answer to Question #189977 in Macroeconomics for RETHABILE

Question

• Describe what has happened since 2008 to the number of people that are:Employed
• Unemployed according to the formal definition of unemployment
• Unemployed according to the expanded definition of unemployment
• Explain whether it is possible for the amount of employed people to decrease while the unemployment rate decreases.
• Analyse the differences in unemployment rates by race and gender.
• Propose how you think unemployment can be reduced in South Africa?

Answer 1

• In 2008, there was a collapse of housing bubble which led to great recession causing unemployment rate to rise to 10.0% in October.
• Unemployed according to the official definition refer to people who are jobless,who are actively seeking for work and are available for the work but are unable to find a job
• Unemployed according to the expanded definition refer to people who are discouraged from seeking work and lost hope of finding any kind of work.
• Yes. If labour force participation rate increases
• Unemployment rate is inversely proportional to educational attainment. The more educated the workforce, the lower the unemployment rate. Geographic dispersion also contributes as blacks are more likely to live in economically filthy areas than whites, which will drive up their unemployment rate than the whites. Hispanic immigrants remain near their country for origin whereas Asian immigrants pick locations based on economic opportunity.
• By boosting economic growth through creation of jobs to reduce socio- economic inequalities and poverty. By retaining jobs through training lay-off scheme. Lastly, by supporting entrepreneurship and small businesses.