This study is based on data research done by Bloomberg, IMF and ILO. Many researches and data scientist are involved in this research so as to provide the overall overview of the global unemployment index throughout the year 2017.
Unemployment
Figures are 2017 estimates by the International Labour Organization for those in the labor force aged 15+. Unemployment can serve as a proxy for the overall health of the economy. Long-term high unemployment levels eventually lead to less spending power among consumers, lower tax revenues for governments and possible social unrest.
Effect of unemployment in relate to business opportunities:
Higher unemployment will mean that many households will have less income. For many businesses, this will result in lower sales as people spend less. However, the demand for some products and services will increase when unemployment is higher. This is because consumers swap to cheaper alternatives. Such goods and services are often supermarkets’ own-brand products and are sometimes thought of as lesser-quality goods. Businesses that provide them may benefit from higher levels of unemployment.
Businesses that benefit when there is an increase in unemployment will also have more people to choose from if they need more staff. Businesses looking to recruit people may also be able to offer lower pay and still attract new staff, although they cannot offer less than the national minimum wage.
Bloomberg Risk Indicators Matrix
As from the above index, we can clearly see that many countries which lies under the red colour index has got the high risk of unemployment compared to the other countries in blue and pink. Mostly countries form South America like as Brazil and Columbia are in high risk zones. Additionally, Some countries like South Africa, Spain, Turkey, Egypt and Morocco are categorised in the same group.
Secondly, the mediate risk zones countries that comes under mediate unemployment rates are Canada, France, Romania, Ukraine and Finland.
The countries that lies on low risk zones for unemployment rates are China, India, Saudi Arabia , U.S.A , Mexico, Germany, Poland, United Kingdom, Norway, etc. These are most of the develop countries which are improving their employment sectors targeting all the aged groups by providing lots of employment opportunity in their own home country.
According to the global index 2017 by U.S labor bureau of statistics
The number of employed people increased by 1.8 million over the year, to 153.9 million in the fourth quarter of 2017. This growth was smaller than the over-the-year increase of 2.5 million in 2016. As a result of the recent growth, the employment–population ratio continued to rise, reaching 60.1 percent by the fourth quarter of 2017. (See table 1 and figure 2.) The employment–population ratio has gradually trended up since 2014. In the third quarter of 2017, it reached its highest point (60.2 percent) since the recession ended. However, it remains well below levels that predated the Great Recession.
In 2017, the labor force participation rate, at 62.7 percent, was unchanged from a year earlier. The participation rate has remained around this level for the past 4 years. (See table 1 and figure 1.) In the third quarter of 2007—just before the recession—the participation rate was 65.9 percent.
References:
1. https://www.bloomberg.com/graphics/global-risk-briefing/
2. https://www.bbc.co.uk/bitesize/guides/zrwtmfr/revision/2
3. https://www.bls.gov/opub/mlr/2018/article/job-market-continued-to-improve-in-2017-as-unemployment-rate-declined-to-a-17-year-low.htm
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