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

Macroeconomics Article Commentary. The worst problems surrounding youth unemployment in Scotland are not over, a Scottish Government Minister told MSPs today.

Extracts from this document...


´╗┐IB Economics: Internal Assessment Coversheet School Code ----- Candidate Name Stefan Joseph-Bennett Candidate Number Teacher -------- Title of the article Youth unemployment requires long-term action, minister warns Source of the article Scostman News http://www.scotsman.com/news/politics/youth-unemployment-requires-long-term-action-minister-warns-1-2238853 Date the article was published April 17th, 2012 Date the commentary was written March 17th, 2012 Word Count (750 max.) 745 Section of the syllabus the article relates to Macroeconomics Article: Published on Tuesday 17 April 2012 14:41 THE worst problems surrounding youth unemployment in Scotland are not over, a Scottish Government Minister told MSPs today. Despite statistics showing a rise in jobs on offer, Minister for Youth Employment Angela Constance said that such a claim would be foolish. She said that improvements in Scotland?s economy would resolve some problems of getting young people into work. But she added that, in the long-term, work is needed to help those facing ?considerable barriers?. Constance?s remarks came as she appeared before Holyrood?s Education Committee to answer questions on the Scottish Government?s Youth Employment Strategy, and ahead of the publication of the latest job figures tomorrow. ...read more.


rates of 25% due to ?disadvantaged backgrounds?. This can most likely be assumed that these people have had a lack of education and do not have the sufficient skills to apply for the desired jobs. This could be labeled as a ?skill mismatch? between workers? skills and employers? needs. Unemployment can have a significant negative impact on a country?s economy and society. As the unemployment level rises, the more people are eligible for benefit payments (money given to the unemployed to consume basic necessities) which take away from the government?s revenue and spending power. Secondly, and most importantly, unemployment can cause a waste of resources and reduce the nation?s output which will lower the economy?s GDP. With this loss of the nation?s output, the economy will be producing within its PPF (Production Possibility Frontier: ability to produce ALL available resources efficiently) and lowers/decreases economic growth. The following labor market diagram can depict what unemployment the market is facing. As seen in the diagram, the labor market is shown in a simple AD/AS model. ...read more.


towards increased spending for the education sector. The government can lower the number of un-educated workers/youths that lack adequate skills by subsidizing education and implementing better training for jobs. Currently, the aggregate supply for young Scottish workers lies on the ?AS Labor? curve as firms can?t hire the un-skilled workers. This leads the real GDP, or the output of the country to be lower as goods and services aren?t being produced at maximum efficiency due to the lack of workers. The long-run solution that is alluded in the text would definitely be to improve the education system because currently the economy is running on spare capacity (producing at less than maximum efficiency). The economy would have to bare with the supply crisis until the workers have acquired the adequate skills. If the re-evalution of the fiscal policy is used by the Scottish government, then they can potentially fix this skill-mismatch issue and avoid disastrous economic problems. Lastly, to ensure economic safety, the Scottish government should restrain from borrowing money and spend money on other projects to allow them to fix their problem. This could hinder the development in other sectors as the money available to them should be placed towards education. ...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. IB Macroeconomics Commentary

    Job growth typically does not start until recession ends and the economy starts to expand. The weaker the expansion, the longer it may take for hiring to kick in and unemployment to fall. After the end of the 2001 recession, for example, job growth did not start for more than a year.

  2. Evaluate the policies available to a government that wishes to reduce unemployment rate

    Evidently, as illustrated, reducing unemployment benefits gives workers the incentive to look for jobs, and therefore lessens the unemployment gap. However, it is not possible for all workers to look for jobs, due to several factors. First, as stated in the policy above, they might not be able to find

  1. Old IB Questions

    successful the advertising and branding as methods of convincing consumers about the superiority of a product, the less elastic will be the demand curve facing the firm, the greater the monopoly power (the ability to control price), and the larger the firm's potential to increase short-run economic profits.

  2. Unemployment - measurement, different types and the problems caused by unemployment

    Monetarists believe they make up the majority of the unemployed - Involuntary unemployment is when somebody couldn't find a job even if they really tried.

  1. The low-wage jobs explosion - Macroeconomics IA Commentary

    As a result, the level of unemployment will decrease. This is illustrated in the diagram below. The diagram shows that there is full employment equilibrium at quantity Le of labor and real wage We. If the wage level is increased to W1, there will be a fall in the quantity of labor demanded to L1 and an increase in the quantity supplied to L2.

  2. Role of ICT for "Make in India" government initiative.

    the defence sector and country?s intensive modernization plans are some of the key reasons to invest in India. Russian President Vladimir Putin has showed his keenness to manufacture one of its most advanced helicopter Kamov 226 T in India. Although 6O% of defence purchases come from Russia, Indian government aims

  1. Macroeconomics Economics Commentary - patterns in America's unemployment statistics

    Logically this makes sense for teenagers (assuming they are in the job searching range of 16 to 19 years old), in this age group most teenagers have had little professional experience as emphasis is placed on

  2. Current account surplus/deficit - problems and solutions

    A possible solution to reduce a current account deficit is limiting imports and to achieve this, a government can use protectionist policies. However, this will fuel political conflicts and also, lead to trade wars, which leads to a global misallocation of resources due to more inefficient production passed on to inefficient producers whom do not hold a comparative advantage.

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