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As an Employer - Essay Example

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When such a situation in a country reaches an elevated level, the country’s economy is highly affected (Taylor, 2006).
One of the ways in which…
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As an Employer
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As An Employer inserts his/her inserts Grade inserts Unemployment in Brazil Unemployment can be described as situations where by individuals are willing to work but there is limited or no job opportunities. When such a situation in a country reaches an elevated level, the country’s economy is highly affected (Taylor, 2006).
Relationships between unemployment and the economy in Brazil
One of the ways in which unemployment relates to the Brazilian economy is in terms of unemployment financial costs. There are indeed some years in which Brazil has recorded elevated levels of unemployment and this led to suffering of the government as a whole. If the number of unemployed people in the country is too high and at the same time these people stay longer without jobs, the government strains in terms of shelling out money to cater for their livelihood. For instance, the Brazilian economy was slugged in the year 2001 following 58% increment in unemployment rate from the previous year. It took another two years for the Brazilian economy to re-gain its stability (Taylor, 2006).
Another relationship between the economy of Brazil and unemployment rates is in terms of spending power. High rates of unemployment leads to reduced rates of spending since the unemployed persons decides to save their money and drastically cut on their expenditure which in turn affects the economy. On the other hand, the employed persons also reduce their rate of spending due to insecurity of their own work and increased taxes by the government. If this trend continues, the government becomes unable to obtain or collect enough taxes to sustain the economy and this leads to economic instability in the country; as witnessed in the years 2001 up to the year 2004. In short the government can only sustain its economy if it obtains enough taxes and revenues from public spending. It is this public spending that unemployment targets in order to curb the economy and make it unstable. Most businesses in the country cut prices in order to sell their products and sometimes lead them out of business thus casing even more unemployment (Taylor, 2006).
Lastly, the Brazilian economy is related with its unemployment rates in terms of recession. In situations where the country experiences increased levels of unemployment, some vital economic factors such as health costs, income, healthcare quality, living standards and poverty are affected. These economic determinants at the end affect the stability, performance and growth of the country’s economy (Taylor, 2006).
Trends seen in unemployment data sets in Brazil
The last time unemployment rate was reported in Brazil was in September 2011 and the standings were at 6%. This is seen as a lower figure compared to an average standing of 10% between 2001 and 2010. The period between 2001 and 2004 was the most significant period in the history of the country where by the rates of unemployment elevated till 12% higher than the overall average standings. This saw the Brazilian economy destabilize and record downward growth trends. In august 2003, the unemployment rate was seen to hit the historic high of about 13.2%. Intervention by the international community, private sector and outsourcing were actually the main key turning point that have led to reduction of the trend of unemployment till today where it is projected to hit 5.5% by the end of this year (Taylor, 2006).
Reference
Taylor, R. (2006). Unemployment statistics in Brazil. Journal of economics, 2(13), 171-176. Read More
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