• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Econ Commentary 3

Extracts from this document...

Introduction

Jeff Leeson I.B. Comparative Politics and Economics (SL) Steve Smith South PM3 March 16th, 2009 (due March 18th, 2009) Commentary 4 Source: "When Jobs Disappear." The Economist 12 Mar. 2009. 16 Mar. 2009 <http://www.economist.com/displaystory.cfm?story_id=13278217>. I.B. Syllabus 3.5 Word Count: 669 This article is talking about how the unemployment rate around the world has soared due to lack of money flowing through the economy. It goes into detail about how employers who were confident on hiring workers last year are now expecting a decrease in jobs in their company. This is happening because people are spending less so, in turn, companies have to cut their costs of production or lay off workers. ...read more.

Middle

* Structural Unemployment: Occurs when there is a permanent fall in the demand for a particular type of labor. This is probably the worst kind of unemployment because the people who just lost their jobs lack the proficiency to move on to the newly created ones. * Labor Market: Includes all the demand for labor (construction, teaching, etc.) and all the workers in an economy willing to work at an average wage rate. Also called aggregate demand and aggregate supply. The article talks about these concepts in the following ways: * Cyclical Unemployment: This is basically what the article is about. ...read more.

Conclusion

* Labor Market: The article mainly focuses on aggregate demand for labor and how it has dropped. This means that there's all around less work and more unemployed people. It has come about like this because people have less money and are spend less so companies have less profit that they can use to hire and maintain workers and their salaries. This article is very complete; all of its statements are back up with facts and dates. It doesn't just focus all of its information on the US but includes many other countries that have been affected by this economic downturn and are facing unemployment issues of their own. It's written by The Economist which is a reliable source of information on the many parts of the world economy. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Economics essays

  1. Old IB Questions

    entry and exit of firms that makes the short-run profits or loss tend to zero. The long-run equilibrium position of the firm and the industry under perfect competition is graphed below. As a result of entry or exit, the market settles at the price Pe, which is just equal to

  2. The luxembourg Economy (Complete Review)

    In the Short term these implementations provide the necessary working force to strengthen the economic recovery, while in the long term, increased spending by these international employees may boost economic activity and furthermore increase the demand for labour, lowering domestic unemployment.

  1. Economics Commentary Prac 3

    Then the government plan to export the extra sugar into international market. However the limit for subsidised sugar exports is 1.37m tonnes, according to the EU's commitments and World Trade Organization (WTO)3 agreements. The EU is not allowed to export more subsidised sugar because the subsidy could be looked upon

  2. Economics Commentary 3

    Exports went up by 27.1 per cent (on June 2006) and imports climbed 14.2 per cent. Last year's $177.5bn trade gap was a record. Much of the balance derives from America. The persistent undervaluation of the Chinese currency worries about intellectual piracy and the quality of Chinese goods and the

  1. Economics Commentary 4

    "I don't think there's any question that demand will pick up to absorb it (excess capacity)," Phelps said. "China's GDP and consumption are growing at staggering levels. In 2006, capacity was running ahead of consumption. "What that did in China is up set plans to bring capacity in line with consumption, so prices decline.

  2. 15 Historical Economic Questions on Mercatilism and the Development of European Countries.

    In addition, the Portuguese merchants gained access to the interior via the Senegal and Gambia rivers, which bisected long-standing trans-Saharan routes. This allowed the Portuguese influenced, Senegambia and Guinea trade to expand into new markets and vastly increase the goods of which they can trade and trade for.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work