NAME AND SURNAME :
STUDENT NUMBER :
ASSIGNMENT NUMBER : 01
UNIQUE NUMBER : 644387
MODULE CODE : OTE2601
, Question 1
1.1. Addressing the natural rate of unemployment is straightforward in theory but difficult in practice.
Government can play a useful role in providing unemployment and welfare payments, passing rules
about where and when businesses can operate, assuring that the workplace is safe, and so on. But
these well-intentioned laws can, in some cases, become so intrusive that businesses decide to place
limits on their hiring. Low-income and middle-income countries face employment issues that go
beyond unemployment as it is understood in the high-income economies. A substantial number of
workers in these economies provide many of their own needs by farming, fishing, or hunting. They
barter and trade with others and may take a succession of short-term or one-day jobs, sometimes
being paid with food or shelter, sometimes with money. They are not “unemployed” in the sense that
the term is used in the United States and Europe, but neither are they employed in a regular wage-
paying job.
Unemployment negatively impacts the economy of the country. This is because
unemployment creates a feel of hopelessness and depression among the unemployed people.
Unemployment results in the wastage of human resource as people are not involved in any
kind of productive activities. This makes them a liability for the nation.
Unemployed people are not able to support their families and educate their children. This
makes the entire family dependent on the nation, and hence, the dependence of unemployed
people increases on the working population of the country.
The quality of life of an unemployed person deteriorates which also impacts the social life of a
person. This may result in people engaging in illegal activities such as theft, robbery, etc.
Increasing trends towards unemployment is an indicator of a depressed economy where most
of its human resource is not engaged in any productive activity.
The economic loss to the individual and the family cannot be overstated. The Treasury advised that in
the short-term, unemployment significantly reduces a person’s income and, in the long-term, reduces
their ability to save for retirement and other goals. This is because employer as well as employee
superannuation contributions are lost and the capacity to save from disposable income is lowered. The
financial, budgetary and economic effects of unemployment are profound. Many of those who leave
the workforce unwillingly do not have the resources for a comfortable and long retirement. The price
paid by society is increased income support, health and community support costs and reduction in
STUDENT NUMBER :
ASSIGNMENT NUMBER : 01
UNIQUE NUMBER : 644387
MODULE CODE : OTE2601
, Question 1
1.1. Addressing the natural rate of unemployment is straightforward in theory but difficult in practice.
Government can play a useful role in providing unemployment and welfare payments, passing rules
about where and when businesses can operate, assuring that the workplace is safe, and so on. But
these well-intentioned laws can, in some cases, become so intrusive that businesses decide to place
limits on their hiring. Low-income and middle-income countries face employment issues that go
beyond unemployment as it is understood in the high-income economies. A substantial number of
workers in these economies provide many of their own needs by farming, fishing, or hunting. They
barter and trade with others and may take a succession of short-term or one-day jobs, sometimes
being paid with food or shelter, sometimes with money. They are not “unemployed” in the sense that
the term is used in the United States and Europe, but neither are they employed in a regular wage-
paying job.
Unemployment negatively impacts the economy of the country. This is because
unemployment creates a feel of hopelessness and depression among the unemployed people.
Unemployment results in the wastage of human resource as people are not involved in any
kind of productive activities. This makes them a liability for the nation.
Unemployed people are not able to support their families and educate their children. This
makes the entire family dependent on the nation, and hence, the dependence of unemployed
people increases on the working population of the country.
The quality of life of an unemployed person deteriorates which also impacts the social life of a
person. This may result in people engaging in illegal activities such as theft, robbery, etc.
Increasing trends towards unemployment is an indicator of a depressed economy where most
of its human resource is not engaged in any productive activity.
The economic loss to the individual and the family cannot be overstated. The Treasury advised that in
the short-term, unemployment significantly reduces a person’s income and, in the long-term, reduces
their ability to save for retirement and other goals. This is because employer as well as employee
superannuation contributions are lost and the capacity to save from disposable income is lowered. The
financial, budgetary and economic effects of unemployment are profound. Many of those who leave
the workforce unwillingly do not have the resources for a comfortable and long retirement. The price
paid by society is increased income support, health and community support costs and reduction in
