Posted at 10.27.2018
The unemployment rate among youth has reached 10. 0%, the best record to be placed in ten years. The unemployed surpassed one million for two consecutive a few months and unemployment rate has come close to mark 5%. As time passes, the market is showing more distinct indications of recovery however the employment index continues to be dismal.
According to February's occupation trend released by Figures Korea on Thursday, people without careers increased 244, 000 compared to this past year to total 1. 169 million. As a result, February's jobless rate stood at 4. 9%, a 1. 0% point month-on-month increase.
The unemployment rate of those aged 15-29 proclaimed 10. 0%. This is the first time in a decade since February 2000 (10. 1%) for South Korea's youngsters unemployment rate going to two times digits. Considering February is the graduation season, the seasonal effect seems to have played an essential role in mentioning the pace.
However, the number of the employed also increased at exactly the same time. Applied people in January increased 125, 000 from the same period this past year to tally 22. 867 million. This is actually the highest increase to be published since August 2008 (159, 000).
The unemployed increasing in tandem with the used is a sensation observed when an economic recession converts to recovery.
Eun Sun-Hyun, mind of the employment statistics department at Figures Korea said "February is the graduation season and thus, at this time of year, unemployment rate gets to its optimum. The upturn in overall economy, a growing involvement in job creating businesses and students hurrying to find work in private areas after graduation have all resulted in mentioning the jobless rate. "
[Written by Han Yea-Kyung- Minjeong Tune/ edited by Soyoung Chung]
["' Maeil Business Magazine & mk. co. kr, All rights reserved]
A low unemployment rate is one of the primary macroeconomic goals of every authorities. However, Korea has been experiencing economical problem which have an impact on Korean economy most harshly by increasing unemployment rate. This commentary will concentrate on unemployment which is pertains to section 3. Unemployment is thought as "folks of working era who are without work, available for work and actively seeking work". By the definition, the unemployment rate is the quantity of people who are unemployed expressed as a percentage of the total labor force. However, individuals who are choosing never to work or unable to work wouldn't normally consider to the area of the labor force, because they're not positively seeking employment.
There are two main types of unemployment - equilibrium and disequilibrium unemployment. Disequilibrium unemployment has two types, real-wage and cyclical unemployment, both arise when there are any conditions that helps prevent the labor market from "clearing ". Equilibrium unemployment occurs when careers exist but the people are either unwilling or unable to take these chances. You can find three main types of equilibrium unemployment, that happen to be frictional, seasonal, and structural unemployment. In cases like this, those linked to frictional and seasonal unemployment because the seasonal impact and graduation season seem to be to have afflicted to improve the unemployment rate.
However, the unemployed would face several costs. If they received less income, this contributes to have a lesser standard of living and affects to own costs of unemployment to the unemployed people themselves. Also, unemployment will ruin society, because it is affecting the speed of domestic violence, crime and medication, etc. Furthermore, there would be the ability cost of the government's shelling out for unemployment benefits, because the federal government may have to spend additional money to resolve the interpersonal problems created by unemployment. Thus, unemployment poses great costs with an economy which means governments make an effort to reduce the degree of unemployment.
This article shows February's jobless rate increased as they were looking for careers after graduation and also because of the seasonal effect that February reaches the end of winter. Labors leaving or shedding one job would generally attempt to find another. That is related to seasonal and frictional unemployment, which occurs when people are among jobs or they have left education waiting for taking up their job which period is mostly short-term. That is natural for individuals to leave jobs by having hopes to find better places, thus this is not a serious problem within an economy due to its short-term dynamics. However, according to the article, the main issue is the fact unemployment rate increased for consecutive calendar months, so if it hasn't solved, then it will be continue to reaching into the level of long-term unemployment.
There are techniques federal government can reduce this degree of unemployment. If unemployment benefits were reduced, then the reduction in unemployment benefits lead to truly have a lower standard of living, therefore the unemployed staff might are more prepared to work. Thus, change the aggregate supply of labor (ASL) to the right, ASL to ASL.
Number of workers
The y-axis on the diagram symbolizes the price of labor, as assessed by the common real income rate. The aggregate supply of labor curve (ASL) illustrates the full total volume of an economy's employees that are ready and able to work in the economy at every given average wage rate.
However, the article mentions the number of the utilized also increased at the same time, when the unemployment rate increased. It is because an economic downturn turns to recovery, thus consumers obtain more money that brings about have a higher standard of living, so this influences on shift resource curve to the right as move the demand curve to the right, and then provider would expand job. Nonetheless it seems like it is difficult to find their careers and there aren't enough jobs for all the unemployed scheduled to increases in unemployment rate. Therefore there should be creating more jobs and also increasing the movement of information from potential employers to all or any the unemployed through the Internet job sites, newspapers, and job counselors.