Understanding Unemployment: Voluntary vs. Involuntary and its Impact on Economies, Esquemas y mapas conceptuales de Comercio Exterior

¡Descarga Understanding Unemployment: Voluntary vs. Involuntary and its Impact on Economies y más Esquemas y mapas conceptuales en PDF de Comercio Exterior solo en Docsity! INTRODUCTION Generally, the terminology of unemployment is described as a situation, where a person actively is looking or searching for the opportunity of employment, but is unable to find it. Noteworthy is the fact that unemployment can be individually defined into two different categories, namely, voluntary and on the contrary, involuntarily. When the market labor condition does not provide space or a demand for certain job, due to economic reasons, the unemployment of a actively job seeking individual is described as involuntary, as he/she does not have a desirable skills for the demand of the market condition. On the contrary however, there is the term voluntary-unemployment, and as the word describes it, it refers to individuals whom, although have desired skills for the market and could participate in its economy, actively chooser not to participate in it. The unemployment rate is the most commonly used and exact tool/indicator, for understanding the previous and present market and labor conditions. In this sense, it reflects and has a high value, for monitoring the economic health of a country, furthermore, providing a detailed insight into how the economy is performing generally as well as in specific sectors. This makes it one of the most important tools a country possesses when having to analyze its economy and taking into account monetary and budgetary decisions for the present and future. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 0 100 200 300 400 500 600 700 800 900 1000 Unemployement rate of the population by age (1ST Semester 2010-2021) 15-19 20-29 30-39 40-49 50-59 60 (1) The unemployment rate which is differentiated into different ages is particually important for several reasons. However, the importance in them lies in the ability of the reader to identifiy problems that can be traced back to the generation of the population, resulting in conclusions that can be related and drawn to various factors such as education and social economic situations. According the the data collected and displayed in the graphic representation (1) above, the following observations can be made: It is noteable, that the highest unemployment rate throughout the years are registred in the range of 20-29 years. Where as the population group least reported as unemployed lies in the range of 50-59 and 60+ years. It is also noteable, that the general unemployment rate has had a descrease during the years, but is once again soring at original values in the ultimate and present years. In the more specific case of Mexico, high unemployment rate and poor working conditions related to hours and pay-wages have haunted the country throughout its early recorded history. High rates of unemployment have terrorized the nation in the economic downfall of 2009, when unemployment numbers exploded to a massive 5.7%. After the economy slowly recovered, the country was able to hold its quotient with a slight incrementation until 2011, following was a even mor horrific event in its economy. In the late month of 2012, the unemployment rate, once again, went up by 4.6%. This series of economic disaster was directly linked to the collapse of international economies and trades, the country was unable to project increased numbers in the years to follow, and with the arrival of the international pandemic caused by the corona virus, the unemployment rate internationally and specifically in Mexico was affected immensely. It is however important to mention, that studies indicated a steadily decreasing rate after its mayor peak in May 2020, where the country was able to recover to a steady 3.8%. The economic damaged was primarily caused in young age groups of the population, where at the beginning of 2020 the age groups 20-29 alone, made up more than 1/3 of the total unemployment rate. Speaking of unmotivated workers, who make up certain percentages of a countries unemployment rate, it gets rather tricky. The above mentioned are a group of individuals in a country that simply don’t want to work or participate in economic activities, not influenced y external factors such as job availability, wages and working hours, but by choice. This may be for various personal reasons of these individuals, which may be to some certain extend even be justified, however, in any country or economic system, these unmotivated workers cause a thread to economic development. Now looking at an example it becomes clearer and more understandable; Countries with enormous social support and safety nets get easily and more commonly exploited, as these individuals can still enjoy a comfortable standard of living while not having to interact in the country’s economy. In any case or country, the principal problem remains the same, as there is a % of the population, who is consuming state and community resources, without proactively helping to promote and develop the economy. This is shortly said, a waste of money for the state. The main reason for migration to occur is the factor of unemployment. This can be observed al over the world, where the residents of countries who experience intense economical problems, tend to migrate abroad for the opportunity of finding employment. Low wages, lack of development and uncertainty for the future all play into this specific topic. It is observable, as mentioned, all over the world, where south Latin residence tend to migrate to Mexico to find employment, as the country in comparison to its lower neighbors, has more to offer in the economic labor market. Interestingly this same migration occurs as well in its own borders, where Mexican citizens are trying to reach the United States for job opportunities and employment. This phenomenon can be observed in Europe as well, where massive floods of migrants and refugees flee or migrate from south easter countries, and travel into the heart of Europe and Germany for the same reason. It is also to mention, that there are great differences in the way all these different countries treat the migration with intention of finding employment. Mexico is well known to let refugees in and provide them with little basic care, whereas the United States of America have harsh policies and try to deny entry into its county. Germany and European countries on the other hand, tend to welcome the concept of migration to further expand their economic growth and development. They implement certain strategies to maximize the positive potential that the migration brings, and so, offer programs of integration and support, to ease the process and get these incoming migrant workers to actively participate in the economy CONCLUSION The importance of the unemployment rate and accompanying factors such as different unemployment groups within the nation cannot be ignored. It is evident that their affect on any country is in the long term, devastating and unsustainable. These rates directly impact the development of the country as well as the health of its economy. In the case of Mexico, it has become so ever clear, that one of the main problems the country has is unemployment, which ultimately renders it helpless, in the intents of bringing new economic health to the country and its standard of living. All countries regardless, should implement case specific policies to handle their unemployment rates and the migration of different populations. The benefits in the long term vastly outnumber the short-term problems the country must face to deal with it. It should be the vital importance to any nation or country, to efficiently manage these situations and conditions, to guarantee a bettering future for the country, but more importantly its citizens and residents. BIBLIOGRAPHY  https://ethic.es/2017/04/uvas-de-ira-y-origen-de-desigualdad/ (Enlaces a un sitio externo.)  https://www.eleconomista.com.ar/2014-09-los-trabajadores-desanimados/   Unemployment - Unemployment rate - OECD Data  Global Unemployment Crisis Continues; Wage Inequalities Rising, Says ILO Renewed International Commitment to Full Employment is Needed  https://www.inegi.org.mx/sistemas/olap/proyectos/bd/encuestas/hogares/ enoe/2010_pe_ed15/pda.asp? s=est&proy=enoe_pe_ed15_pda&p=enoe_pe_ed15  https://www.inegi.org.mx/app/tabulados/default.html?nc=601&idrt=18&opc=t  https://www.inegi.org.mx/app/tabulados/default.html?nc=610&idrt=18&opc=t  https://www.inegi.org.mx/app/tabulados/default.html?nc=625&idrt=18&opc=t o Michael Rosholm, Journal of Population Economics,Vol. 14, No. 1 (May, 2001), pp. 173-191