Answer to Question #189979 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

Describe what has happened since 2008 to the number of people that are

1) Employed- many employed people close to 2.6 billion lost their jobs causing the unemployment rate to rise by 7.2%.

2) Unemployed according to the formal definition of unemployment.

The long-term unemployment rate doubled with rise in housing prices and stock portfolios.

3) Unemployment according to the expanded definition of unemployment- The unemployed started to seek for work. They took up jobs they were prepared to work for.

4) Explain whether it is possible for the amount of employed people decreases while unemployment rate decreases.

The unemployment rate can decrease in the number of employed people decline only if there is a significant decrease in the total number of working age population.

Analyse the difference in unemployment rate by race and gender.

The number of women and men of different race are reflected in the difference in labour force participation rates, median wages, occupation and industries they work.

a) Purpose how you think unemployment can be reduced in South Africa

Boosting of economic growth to reduce socio-economic inequalities and poverty through tripling the size of private Corporate sector.

b) Retaining jobs through monitoring and evaluating dismissal of employees.

c) Overhauling policies which may cause the rise in cost of doing business result to discourage employment and reduce economic growth rate.

d) Supporting entrepreneurship and small businesses through creating policies that ensure their survival and expansion as well as creating more new firms to reduce unemployment rate.