МІНІСТЕРСТВО ОСВІТИ І НАУКИ УКРАЇНИ

ДЕРЖАВНИЙ ВИЩИЙ НАВЧАЛЬНИЙ ЗАКЛАД

«КИЇВСЬКИЙ НАЦІОНАЛЬНИЙ ЕКОНОМІЧНИЙ УНІВЕРСИТЕТ
імені ВАДИМА ГЕТЬМАНА»
Кафедра іноземних мов факультету маркетингу

Есе
з дисципліни «Фахова іноземна мова»
на тему « How does the unemployment rate effect the economy»

Виконала студентка
групи IE-302, 3 курсу
Вікторова Я.С.
Перевірила: Редзюк І.В.

КИЇВ КНЕУ 2022

The rate of unemployment is more than a percentage of unemployed people, it is used
as key a macroeconomic indicator when determining the health of an economy. The
unemployment rate is found by taking the labor force and dividing it by the number
of people who are currently searching for a job, also know as the number of
unemployed people. The unemployment rate is composed from three types of
unemployment: frictional, cyclical, and structural. This could create a potentially
serious problem for policy makers because high unemployment rates don't
necessarily mean that the economy is slacking. Economists refer to the
unemployment rate as a lagging indicator of the economy because the economy
usually heals itself before unemployment rates can drop again. When someone loses
their job, their steady income disappears, causing them to pay less taxes to the state
and federal government. As more people become unemployed the government will
have to make up for the tax revenue loss by raising taxes for both employed and
unemployed, in turn giving tax payers even less money to spend freely. Since almost
everyone who is unemployed will eventually become eligible for unemployment
insurance and will slowly take money out of the economy rather than contribute to it
with taxes, the government will again have to raise taxes if unemployment were to
rise more. With more unemployed workers, there is less money to go around, causing
overall demand of goods and services to fall. Economists say that unemployment
imposes a ripple effect on the economy because of small-scale effects it has on
individuals as well as the larger-scale effects it has in the markets. One of the three
main rates that is looked at is the frictional unemployment rate. Frictional
unemployment arises as a result of the normal labor turnover that occurs in a healthy
dynamic economy. The second kind of unemployment that is looked at is the cyclical
unemployment. Cyclical unemployment similarly coincides with the economic
output. When the economy has a low output cyclical unemployment will rise due to
less demand from businesses for labor. Cyclical unemployment is temporary, as the
name suggests, businesses will cycle through employees over time, jobs open in one
place and close in another. In a similar manner you can find the structural
unemployment rate by dividing the civilian labor force by the number of people
structurally unemployed. When someone becomes structurally unemployed they are
either forced to take a lower level job (underemployed) or to choose to not have a job
at all which at that point they wouldn't be considered unemployed. What is the
difference between actual unemployment rate and natural unemployment rate? When
determining the overall health of an economy unemployment plays a huge roll. The
rate of unemployment and all the factors that go in to it effects everyone that
contributes to society. When changes are made to fiscal and monetary policies,
government policy makers must look past the actual unemployment rate and deeper
in to what is contributing to unemployment itself. Policy makers must take into
account not only the unemployment rate but the how the unemployment rate
correlates with business cycles. ? Under some economic conditions, economists feel
that modifications to fiscal and monetary policies can reduce cyclical unemployment.
As the unemployment rate nears the natural unemployment rate, the need for fiscal
and monetary policy diminishes. However, such polices can not change structural and
frictional unemployment.