Now, in Latvia there is a rapid fall in unemployment due to countrie‘s economical situarion, so it is important to look what has caused unemployment in our country and what can reduce this rate. In next pages there will be write about unemployment rate, territorial differences, theory and other questions.
Objections of the work:
1.Analyse unemployment from macroeconomical point of view;
2.Define problems of unemployment in Latvia
3.Get statistical data of unemployment in Latvia
4.Analyse unemployment problems and employment policy in Latvia;
5.Analyse effectiveness of employment policy in Latvia.
6.Try to get some solutions how to decrease unemployment rate;
7.Give recommendations and conslusions about situation in labour market.
1.Unemployment
Unemployment occurs when a person is available to work and seeking work but currently without work. [2] Unemployment is an economic condition marked by the fact that individuals actively seeking jobs remain unhired. Unemployment is expressed as a percentage of the total available work force. The level of unemployment varies with economic conditions and other circumstances. [1]
The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of those in the labor force who are unemployed. The unemployment rate is also used in economic studies and economic indexes.
There are a variety of different causes of unemployment, and disagreement on which causes are most important. Different schools of economic thought suggest different policies to address unemployment. Monetarists for example, believe that controlling inflation to facilitate growth and investment is more important, and will lead to increased employment in the long run. Keynesians on the other hand emphasize the smoothing out of business cycles by manipulating aggregate demand. There is also disagreement on how exactly to measure unemployment. Different countries experience different levels of unemployment.
According to economist Edmond Malinvaud, the type of unemployment that occurs depends on the situation at the goods market, rather than that they belong to opposing economic theories [3]
If the market for goods is a buyers' market (i.e.: sales are restricted by demand), Keynesian unemployment may ensue while a limiting production capacity is more consistent with classical unemployment.…
