ECO403 - Macroeconomics Current GDB

by Nilofer Bugti Fri May 27, 2011 5:26 pm

Unemployment is an economic problem as well as a social issue. It affects the living of all the people in a society whether they are young or old, educated or uneducated, skilled or unskilled. Why unemployment is increasing day by day in Pakistan? Write down at least one reason.
Note: Your answer must NOT exceed from 100 words.

by Nilofer Bugti Fri May 27, 2011 5:28 pm

Solution:-
Answer:
Unemployment is increasing day by day in Pakistan due to many reasons. Reasons are job search and wage rigidity in the country.

• Job search:
1. Workers have different abilities and preferences.
2. Jobs have different skill requirements.
3. Geographic mobility of workers.
4. Flow of information is imperfect.

• Wage rigidity:
1. Minimum wage laws.
2. Labor unions.
3. Efficiency wages.

• Sectoral shifts.
• Unemployment insurance (This is for European countries)

ECO403 - Macroeconomics Current GDB

ECO403 - Macroeconomics Current GDB

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